Solar panels on a roof

Compare green personal loans

Make a positive investment by borrowing money to help you live a greener lifestyle.

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.
How much you can borrow Comparison rates Loan terms available Features
Bendigo Bank
Green Personal Loan
$2,000 minimum Rates may vary Loan periods from 1 to 7 year(s)
  • Make unlimited additional repayments, and choose flexible weekly, fortnightly or monthly repayments
  • Access additional repayments with an online redraw, and choose from secured or unsecured green loans.
Community First Credit Union
Green Loan
$1,000 to $50,000 6.39% p.a. 1 to 10 year(s)
  • There are no monthly fees and you can make early repayments without penalty
  • You can make extra repayments and redraw your money as you need it
Hunter United
Green Personal Loan
$2,000 to $30,000 8.36% p.a. Up to 7 years
  • Get rates from 6.99% p.a., and make variable and lump sum repayments early without penalty
  • There is an $8 monthly fee, and a $200 processing fee included in the loan
Nova Credit Union
Green Loans
You may be able to borrow as much or as little as you need, within reason and depending on your situation. 7.45% p.a. Choose from a flexible range of repayment periods
  • Flexibly tailor your loan, and take advantage of potentially competitive interest rates
  • Make early repayments without penalty, pay no monthly fees and access a redraw facility as needed
LCU
Green Personal Loan
$2,000 to $50,000 7.05% p.a. Loan periods up to 7 years
  • Make weekly, fortnightly or monthly repayments, and pay it back early without penalty
  • There are no ongoing fees or redraw fees, and you can set up repayments automatically to be drawn from your salary
RateSetter
Green loans
$2,001 to $45,000 10.01% p.a. 3 to 7 years
  • Good borrowers can find lower rates, and there are no early repayment penalties or exit fees to worry about
  • Choose from secured and unsecured loans, and take advantage of flexible loan options

What can a green loan be used for?

Triple glazed windowSome 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. This is a rate that includes 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?

Green Loans you can apply for

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.

Picture: Shutterstock

Was this content helpful to you? No  Yes

Related Posts

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Privacy & Cookies Policy and Terms of Use, Disclaimer & Privacy Policy.
Ask a question
Go to site