Compare green personal loans

Going green is a good investment if your energy costs are rising. Green personal loans can help you find the cash to buy more energy-efficient goods and start saving sooner.

Home solar, electric cars and energy-efficient systems for air conditioning or hot water can save you a lot of money in the long run. Whether you’re just a bit short on cash or want to finance an efficient system outright, green personal loans can step in to help you take advantage of these opportunities.

How does a green personal loan work?

These personal loans can generally be put towards an approved range of energy and cost-saving purchases. The loan terms can be flexible, and may vary depending on your purchase.

• Secured and unsecured. You can find both secured and unsecured green loans.
• Varying repayment periods. Terms range from as little as 6 months to as long as 7 years.
• Flexible borrowing limits. There are a lot of potential purchases that qualify for green loans, reflected in a wide range of borrowing limits to suit different items.
• Early repayments. You’ll often be able to make early repayments without penalty.

Compare green Personal loans

What can a green loan be used for?

Some green loans can only be used with a specific range of items, while others can be put towards almost anything eco-friendly.

Energy-efficient purchases can include almost anything that directly cuts your energy bill, or helps you use less energy.

Green purchases might include:

• Solar hot water heaters
• Home solar panels
• Battery energy storage for new or existing systems
• Electric or hybrid vehicles
• Insulation
• Energy efficient air conditioning or heaters
• Solar pool heaters
• Outdoor awnings
• Rainwater tanks
• Energy-efficient LED lighting
• Double glazing for windows
• Energy efficient appliances

How to compare green loans

Make sure you can put the loan towards your intended purchase. When deciding on a lender, consider features including:

• Interest rates. Look at whether the rates are fixed or variable, and see how it compares to other loan options.
• Comparison rates. Comparison rates for personal loans include built-in fees for the first year of the loan, so you can get more of an idea how loans compare to each other.
• Minimum loan amount. Make sure you can borrow as little, or as much, as suits your needs.
• Application fee. Consider any application fees, and all other fees that may apply.
• Repayment flexibility. Are you able to make early repayments without penalty?
• Security. It is a secured or an unsecured loan?

Things to avoid when taking out a green loan

• Borrowing too much. To maximise your value for money, you may want to only borrow as much as you need, and using savings for the rest, rather than financing more.
• Unlicensed lenders. Make sure you’re dealer with a reputable lender, licensed and listed on the ASIC professional register.
• Excessive fees and charges. Watch out for excessive application fees, and any others which might to be paid.

Frequently asked questions about green loans

Am I eligible for a loan?

Different lenders have different eligibility requirements. To be eligible for a green personal loan you will typically need to be age 18+, an Australian resident and you will need to be using it to improve your environmental efficiency.

How much can I borrow?

The minimum and maximum borrowing amounts vary between lenders, and may depend on what you’re using the money for.

Is it worth using a loan to go green?

It depends on your situation. Sometimes it might be more worthwhile than others. In the long run, buying a $1,000 energy-efficient refrigerator with the help of a $500 loan might be better value than just buying a $500 fridge with your savings.

Similarly, using a green loan to install a home solar system might end up saving someone more than if they had to wait another 5 years.

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