Green Loans Booming At Bendigo And Adelaide Bank

Bendigo and Adelaide Bank state its green loans business has been going gangbusters over the past year.

While various rebates and subsidies are available for emissions-saving and energy bill-busting technologies such as solar power systems and electric vehicles, it can still be difficult finding the up-front cash needed to make a purchase. Among financing options for solar panels and other energy efficient items are green loans, which usually offer lower interest rates than conventional personal  loans.

Bendigo and Adelaide Bank claims it was the first Australian bank to offer a green loan product, which it kicked off back in 2002.

“It’s amazing to see just how far we’ve come since then, with more customers wanting to reduce their carbon footprint than ever before,” said Richard Fennell, Chief Customer Officer Consumer Banking.

Bendigo and Adelaide Bank says it has seen a more than 600% increase in its green loan lending in just one year – the highest number of green loans ever settled by the Bank.

For electric vehicles, the bank is currently offering a fixed interest rate of 4.99% p.a. (comparison rate 5.35% p.a.). The Bendigo Bank green loans page only mentions electric vehicles, but on starting an application there is an “other” option for purpose. Bendigo mentions elsewhere its green personal loan can be used to fund:

• new and used electric vehicles
• solar panels
• solar hot water
• grey water treatment systems
• double glazing
• energy efficient white goods
• solar batteries
• electric vehicle charging stations

..and more.

Bendigo and Adelaide Bank isn’t the only show in town for green loans, so it’s wise to shop around. And on a related note..

CommBank Teams Up With CEFC

Australia’s Clean Energy Finance Corporation announced on Sunday it has made a $125 million commitment to support the Commonwealth Bank’s Green Home Offer.

The Green Home Offer provides a lower standard variable rate on owner occupied or investment home loans for building, buying or renovating a home to be more sustainable, climate resilient and energy efficient.

“Discount green home loan initiatives are a powerful tool to drive down emissions, reduce energy use and create homes that are fit for the future,” said CEFC CEO Ian Learmonth. “This latest investment brings our total commitment to green home finance to $350 million since 2020, when the CEFC took the lead in supporting initiatives to boost Australia’s energy efficient housing.”

CommBank also offers a “Green Loan” product. This is secured fixed rate loan available for eligible clean energy products such as solar panels, home batteries and hot water systems up to a maximum of $20,000.

A Note On “0% Interest” Solar

It’s also worth flagging you can have a solar power system installed under various Buy Now, Pay Later (BNPL) “0% interest payment plan” arrangements, which have become quite popular and also play a role in some state/territory programs. But there can be some devil in the detail. Learn more about the tricks and traps of BNPL solar.