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Australians can save money with green loans

Date Published : Wednesday, July 16, 2008

Consumers looking to improve their home with double glazing or solar-powered hot water systems could save themselves some money by applying for one of the increasing range of "green loans" on offer from banks and credit unions, it has been reported.

According to news.com.au, these loans typically offer borrowers a lower rate of interest than a standard loan, providing it is being taken out for an environmentally-friendly use.

The site says this could include home improvements such as installing a rainwater tank, insulation or photovoltaic cells to generate power from the sun.

It could also cover the purchase of energy-efficient white goods and appliances, such as fridge-freezers or washing machines.

In addition to these types of personal loans, consumers may also be able to take out a green loan to buy a new car such as a hybrid vehicle or one with a five-star environmental rating.

According to the site, the Community First Credit Union in Sydney offers loans for these types of environmentally-friendly purchases, with rates set at around 9.35 per cent.

This compares with interest rates of between 10.89 per cent and 14.49 per cent for loans from some of the bigger commercial banks, it adds.

These lower rates can therefore offer some "significant" savings - particularly for major purchases that run into the thousands of dollars.

According to research firm Cannex, some of the major banks are now moving into the green loan market with offers of their own.

For example, Bendigo Bank has the Generation Green personal loan, which can consumers can apply for to cover purchases such as environmentally-friendly vehicles, external awnings to keep their house cool and solar panel installations.

Find and apply online for the best loan deals.
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