Bendigo bank and Community First Credit Union are offering Green Loans to new and existing customers. Green Loans, though new to Australia, have been in existence for some time in other western countries. It is an interesting concept and in the future we will hopefully see other big banks offer them as well.

Types Of Green Loans

* Green Home Loan - This is the loan you take for your new home or for renovating your existing home - The home has to meet the environmental standards stipulated by the lender.

* Personal Home Loan - You can use this loan to buy an energy saving product like rainwater tanks.

The lender usually has a list of the products that qualify for this loan.

* Loans That Give You A Green Feeling: These are just ordinary loans but once you take up the loan, the lender on your behalf will plant certain amount of trees or do something that is environmentally friendly. So basically these loans make you feel that you have done your bit for the environment…

So What’s On Offer?

Bendigo bank offers both the green home loan and green personal loan. For the home loan the interest rate is .5% less than the normal standard variable interest rate. The home of course has to meet some strict criteria set by Bendigo Bank. Apart from the reduced interest rate, there is also the added benefit of savings in your energy bills (that you gain by installing the environmentally friendly products). Bendigo bank also offers a product called ‘carbon offsets’. By buying this product you are instructing Bendigo Bank to revegetate cleared land with native species on your behalf to offset the carbon dioxide you produce over time. This product can also make an interesting gift to a friend.

Community First Credit Union offers personal loans - loans that you can take to buy energy saving products.

Some More Please…..

The big banks need to take a clue from these lenders and start offering some ‘green loans’. The government should also step up and encourage the banks and other lenders to offer these kind of products - maybe the government could offer some concessions to lenders who offer these kind of products. After all the Mr.Rudd’s has always said that environment was a big and an important issue for its government. As the awareness of these products grows and people start realising the huge savings that these loans come with (both directly and indirectly), more and more lenders will hopefully soon join the bandwagon.

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