Do Green Loans Compare To Regular Loans?

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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%
Unsecured loan 10.47% 7.73%
Car loan 6.58% 6.23%

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:

Australian military bank

  • Unsecured green loan: 3.15% (comparison rate of 4.10% *)

Bank first

  • 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% *)

Bendigo Bank

  • Green Personal Loan (Fixed, Guaranteed): 6.79% (7.14% comparison rate *)
  • Green personal loan (fixed, unsecured): 11.79% (12.84% comparison rate *)

Community First Credit Union

  • 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% *)

United hunter

  • Green Saver personal loan (Variable, Unsecured): 6.99% (comparison rate of 8.36% *)

Loans.com.au

  • Clean green car loan (new, fixed, guaranteed): 3.97% (comparison rate of 4.51% *)

Police bank

  • Green loan (Fixed, Guaranteed): 5.79% (comparison rate of 5.93% *)
  • Green loan (fixed, unsecured): 5.79% (comparison rate of 5.93% *)

Mutual transport

  • GreenRoad hybrid and electric cars (variable): 4.74% (comparison rate of 5.04% *)

Caisse populaire des slopes du sud-ouest

  • Greener Futures loan (variable, unsecured): 8.35% (comparison rate of 8.35% *)

Sydney Mutual Bank

  • Green loan (variable, unsecured): 6.10% (comparison rate of 6.10% *)

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.

* DISCLAIMER: The Comparison Rate combines the interest rate, fees, and charges of the lender into one rate to show the true cost of a personal loan. The comparison rates displayed are calculated on the basis of a loan of $ 30,000 for a term of 5 years or a loan of $ 10,000 for a term of 3 years as indicated, on the basis of monthly repayments. principal and interest, on a secured basis for secured loans and on an unsecured basis for unsecured loans. This comparison rate applies only to the example (s) given. Different amounts and terms will result in different comparison rates. Costs such as redemption or prepayment charges, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

^ See information on Mozo Experts Choice personal loan prices

Mozo provides general product information. We do not consider your personal goals, your financial situation or your needs, and we do not recommend any specific product to you. You should make your own decision after reading the PDS or offering literature, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we do not cover every product on the market. If you decide to request a product through our website, you will be dealing directly with the supplier of that product and not with Mozo.

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About Wanda Reilly

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