In an Australian first the government-funded Clean Energy Finance Corporation will provide a $20 million cornerstone investment to peer-to-peer lender RateSetter to kickstart the online lender’s innovative green loan Marketplace.
Photo: CEFC CEO Ian Learmonth (left) with RateSetter CEO Daniel Foggo (right). Courtesy of RateSetter.
The online green loan marketplace will provide a platform which matches lenders with ‘creditworthy’ borrowers who are looking to invest in renewable energy projects and energy efficient products for their homes and businesses.
"We are delighted to have the support of the CEFC to develop this initiative to support the uptake of clean energy in the home, on the road and in the running of Australian businesses," said RateSetter CEO Daniel Foggo.
RateSetter expects the marketplace to provide investors and borrowers alike with a real opportunity to invest in ‘green assets’ with competitive interest rates - predicted to be around 7% a year for loan terms between three and seven years.
Eligible homeowners and businesses will be able to borrow money for a number of green assets including rooftop solar panels, solar thermal and solar hot water, as well as energy efficient equipment including LED lighting and heating and air conditioning systems.
The Clean Energy Finance Corporation hopes the $20 million funding injection will be a catalyst for borrowers to not only lower their power consumption through investments in energy efficient products, but also to decrease their carbon emissions.
"This innovative facility offers the potential to improve the marketability of green assets, by bringing purchasers, installers and manufacturers closer together,” said Clean Energy Finance Corporation CEO Ian Learmonth.
“There have been green loans before, and there has been peer-to-peer lending, but combining the two into one platform is an Australian first.”
The collaboration comes just days after RateSetter picked up two prizes at the inaugural FinTech Australia Awards including for Excellence in Business Lending and Consumer Lending.
Online lenders such as RateSetter often offer borrowers more competitive rates than traditional lenders. For example, the Mozo personal loan repayment calculator shows that a borrower interested in taking out a $5,000 three year unsecured personal loan would save nearly $500 in interest by opting for RateSetter’s Unsecured Personal Loan compared to the average rate offered by the big banks.
If you’re interested in looking for a personal loan of your own make sure you head over to the Mozo personal loan hub for a huge range of options including peer-to-peer lenders.