Get the BeGreen Loan to pay for any environmentally friendly or sustainable purchase, and don’t pay any account-keeping fees
First Option Credit Union gives its members the opportunity to take advantage of a BeGreen loan, proceeds of which you can use to install a solar energy unit, get a water storage tank, improve your home’s insulation, or carry out any other change aimed at energy efficiency or sustainability.
At the time of application, you can choose between fixed and variable interest rates, and the loan term in both cases can extend up to seven years. This loan does not charge any monthly or annual fees and it also offers repayment flexibility. You won't be charged penalties for extra or early repayments.
|Product Name||First Option CU BeGreen Personal Loan Fixed Rate|
|Interest Rate (p.a.)||From 8.99% (variable)|
|Comparison Rate (p.a.)||9.24%|
|Interest Rate Type||Variable|
|Maximum Loan Term||7 years|
|Min Loan Amount||$1,000|
|Monthly Service Fee||$0|
A few things to know about the loan
This loan is best suited for people who’re looking at making their homes greener and more energy efficient, primarily because First Option rewards members who wish to go green with a very competitive interest rate. While you can opt for a fixed rate loan where the interest rate stays locked for up to seven years, you can also opt for a variable rate loan.
Not having to pay any ongoing account-keeping fees is a definite plus, as is not having to pay any penalties for extra and early repayments. Accessing the extra payments is possible using a redraw facility.
Features of the First Option Credit Union BeGreen Loan
The BeGreen loan gives you the ability to buy a variety of purchases that can make your home greener, and it also comes with a number of features you should know of at the onset.
- Competitive interest rate. The interest rate for this loan is considerably lower when compared to conventional personal loans, which is because you have to use this money for environmentally friendly or sustainable purchases. It comes with a fixed rate of 8.99% p.a.
- Fixed and variable rates. If you want your repayments and interest rate to remain the same through the course of the loan you can get the fixed rate option. If you’re hopeful of benefiting from a drop in interest rates sometime in the future, you can take on the variable rate loan instead.
- Low minimum amount. Borrowing more than you need would result in your repaying more in the form of interest, so having a low minimum amount is a benefit with this loan. You're able to borrow as little as $1,000.
- Variable loan terms. Both fixed rate and variable rate BeGreen loans come with loan terms of between one and seven years.
- Flexible repayment methods. You can sign up for direct debits or salary transfers so you don’t have to keep track of making periodical repayments, and you can also make payments using First Option’s mobile, Internet, and phone banking platforms.
- Extra and early repayments. You have the ability to make extra repayments at any time, and you can also choose to pay the loan off ahead of time. In both scenarios, First Option does not charge and penalties.
- Redraws. You can access extra payments you make towards the loan using a redraw facility, but there’s a minimum limit and an attached fee of $10.
What the loan will cost you
While the BeGreen loan charges a competitive interest rate, take into account that there are other fees and charges you could have to pay during the course of the loan. First Option lists all associated fees and charges in the loan offer document, which you should review carefully to avoid surprises later. Here’s what you would have to pay in the form of commonly applicable fees.
- Loan administration fee: 175 (charged once)
- Account keeping fee:
- Redraw fee: $10 (charged for every redraw)
- Direct debit dishonour fee: 16 (charged at every such instance)
How to apply for the First Option Credit Union BeGreen Loan
Applying for a First Option BeGreen loan is easy, and you can do so in person, online, or over the phone. Bear in mind you should meet the following application criteria to move forward:
- You’re at least 18 years of age
- You’re a permanent Australian resident
- You have good credit history
To complete the application, prepare to submit a variety of information, which includes the following.
- Personal details such as your complete name, marital status, number of dependants, and date of birth
- Your residential status, residential address, phone number, and email address
- Your employer’s name, phone number, and address
- Details about your income and expenses – you may need to scan/email documents depending on your employment situation
- Details about existing liabilities like credit cards, overdrafts, and loans
First Option, through this loan, aims to reward you for making your home cleaner and greener, but since this is not the only loan of its kind, make sure you compare it with others before applying.