Green loans are very low rate personal loans offered by financial institutions who are typically interested in helping the environment and the community.
Green personal loans usually have interest rates more closely resembling your home loan, as long as you are using the funds for solar or energy saving purposes (think solar, double glazed windows and energy efficient air conditioning). You can usually spread your payments over 1 to 7 years with low setup and low to no ongoing fees or early repayment penalties.
If you’ve decided to not spend your cash, then the next best option for most is a green personal loan.
Setting up a new loan, whether it’s an addition to your mortgage or a green loan, attracts a banker’s best friend – fees. Watch out for establishment fees, monthly fees and early repayment fees that can add a significant amount to the total cost of your system.
But if you look carefully, you can find a green loan with a low interest rate, long term options, low up front fee, no ongoing and no early repayments fees.
Who are green loans ideal for? Most people who don’t have bad credit.
Tip: For zero out of pocket monthly expenses, speak to your finance provider about balancing estimated solar savings with a loan term to match the repayments.