In today’s world we live in, it’s no surprise that many Australians are looking to go green.
While recycling, composting, or ditching single-use plastic is unlikely to cost you an arm and a leg, other efforts come at a higher price.
Meet the green personal loan.
Whether you are installing solar panels, buying a water tank, or even switching to an eco-friendly car, these loans are designed to make your lasting dream come true.
How are green loans different from traditional personal loans?
Unlike a general personal loan, a green loan is specifically intended for the purchase of environmentally friendly products.
These could include:
- Solar panels
- Solar hot water systems
- Solar battery systems
- Water tanks
- Gray water treatment systems
- Double glazing
- Ecological or “green” vehicle.
And the good news is that these loans often come with a lower interest rate.
“Not only do green personal or car loans make it easier for Australian customers to finance their green initiatives, but lower rates are also a reward for people who choose more sustainable options for their home or car,” Mozo Director, Kirsty dit Lamont.
According to the Mozo database, here’s how current interest rates for personal and green loans compare:
|Type of loan||Average rate of personal loans||Average rate of green loans|
|Multipurpose guaranteed loan||8.09%||6.29%|
Which lenders offer green loans?
Currently on the Mozo database, there are 10 lenders who offer some kind of green personal loan option.
Here is an overview of what is on offer:
- Unsecured green loan: 3.15% (comparison rate of 4.10% *)
- Green Personal Loan (Variable, Unsecured): 8.75% (10.10% comparison rate *)
- Green personal loan (fixed, unsecured): 8.75% (10.10% comparison rate *)
- Crédit Auto Vert Discount (Fixed, Secure): from 5.29% (comparison rate of 5.56% *)
- Discounted Auto Vert Credit (Variable, Secure): from 5.29% (comparison rate of 5.56% *)
- Green car loan (fixed, guaranteed): 8.29% (comparison rate of 8.57% *)
- Credit Auto Vert (Variable, Secure): 8.29% (comparison rate of 8.57% *)
- Green Personal Loan (Fixed, Guaranteed): 6.79% (7.14% comparison rate *)
- Green personal loan (fixed, unsecured): 11.79% (12.84% comparison rate *)
- Green loan (up to 10 years, variable, unsecured): 5.99% (6.26% comparison rate *)
- Green Loan (Up to 5 years, Variable, Unsecured): 7.99% (comparison rate of 8.27% *)
- Green loan (Fixed, Guaranteed): 5.79% (comparison rate of 5.93% *)
- Green loan (fixed, unsecured): 5.79% (comparison rate of 5.93% *)
Remember that each of these loans may have different qualifying purchases. So make sure when applying for a loan that you are able to buy what you intend to do with the money you borrow.
Want to see how other personal loans stack up? Take a look at a few options below or visit our personal loan department for more.
^ See information on Mozo Experts Choice personal loan prices
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