Commonwealth Bank of Australia (CBA) is expanding its range of green financing to support home loan and personal loan customers to enhance the energy efficiency of their homes, and purchase electric and hybrid vehicles.
The Green Loan is a low, 10-year secured fixed rate and comparison rate loan at 1.99% p.a. with no establishment fee, no monthly loan service fee or early repayment fee. Customers with an eligible CommBank home loan or investment loan can buy and install eligible products to make their homes more energy efficient. Currently, customers can use the Green Loan to purchase and install small-scale renewables like solar panels and battery packs.
To support customers in making their homes more energy efficient, Commonwealth Bank will increase the maximum loan size for its Green Loan from $20,000 to $30,000, and expand the range of products eligible to be funded under the loan from mid-2023.
Commonwealth Bank’s Group Executive, Retail Banking, Angus Sullivan said: “We know Australians are thinking carefully about making sustainable choices that can help them save money, which is why we are expanding the amount of funding, and the range of products, available under our Green Loan.”
“The expansion of eligible products will ensure customers can use the loan for items such as double-glazed windows and to switch their homes from gas to electric cooking equipment – building on the clean energy products already eligible, including solar and battery, solar hot water systems, heat pump hot water systems and electric vehicle charging stations,” Sullivan said.
In addition to installing new items, customers can also use the Green Loan to upgrade their existing small-scale renewables by adding products like a battery pack or additional solar panels.
Commonwealth Bank also offers Personal Loan discounts of up to 7.49% p.a. off the representative rate for a range of eligible sustainable products, including electric or hybrid cars, electric car charging stations, solar panels, battery packs, and solar and heat-pump hot water systems, that meet certain criteria.
“We know that for many Australians one of the barriers to taking up more eco-friendly options is the initial, upfront cost, and our lower rate loans make these options more accessible for our customers.
“CommBank is dedicated to supporting Australia’s energy transition, and rewarding our customers for making more sustainable choices”, Sullivan added.
CBA Research indicates that 64% of customers would consider buying an electric or hybrid car if there was a financial incentive – and in line with this research, since October 2022, the bank has helped customers purchase more than $30 million of eligible sustainable products through its personal loans with lower, upfront interest rates.
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