Singapore Bank Extends Over S$3.5 Billion in “Eco-Care Loans” in Two Years Since Launch

Singaporean lender OCBC Bank has seen strong take-up for its OCBC Eco-Care Loans, with more than S$3.5 billion extended in the two years since its launch in March 2021.

These loans accounted for 1 in 5 home, renovation and car loans extended by the bank during this time frame. Traction in 2022 was particularly strong with the value of OCBC Eco-Care Loans extended quadrupling from 2021.

OCBC Eco-Care Home Loans helped to drive the growth in 2022, increasing in value by four times compared to the previous year. They also accounted for close to a quarter of the number of new home loans in 2022, an encouraging sign that homeowners are actively incorporating sustainability in their lifestyles.

Buoyed by Singapore’s continued electric vehicle (EV) push through incentives and construction of EV charging infrastructure, OCBC Eco-Care Car Loans also fared well. The value of OCBC Eco-Care Car loans extended in 2022 surged by more than 400% from 2021.

The bank expects OCBC Eco-Care Loans to continue its robust growth. This will come on the back of the Singapore government’s sustainability push, led by the Singapore Green Plan 2030, as well as consumers’ increasing willingness to adopt greener alternatives.

Encouraging Greener Choices

The 2022 OCBC Climate Index, which measures the current levels of environmental sustainability awareness and climate action among Singaporeans, found cost and convenience to be two key factors holding consumers back from making sustainable choices.

OCBC Eco-Care Loans also offer preferential rates. For example, OCBC Eco-Care Car Loans, with a rate of 2.48% per annum, are lower than the rate of 2.78% per annum for petrol and diesel car loans.

Mr Sunny Quek, Head of Global Consumer Financial Services, OCBC Bank said, “When we launched our suite of OCBC Eco-Care Loans two years ago, we were cautiously optimistic. Although the sustainability movement had already begun in earnest among businesses, we knew that more had to be done to get consumers to adopt sustainable alternatives.”

“By addressing the top two concerns of Singaporeans – cost and convenience – the take-up rate for OCBC Eco-Care Loans has been better than expected and this upward trajectory should continue. Despite inflationary pressures and expectations that the housing market may slow down this year, we are still targeting close to 10% year-on-year growth in OCBC Eco-Care Loans.”

“Sustainability is an important growth pillar in OCBC’s corporate strategy and OCBC Eco-Care Loans is just one way that we are seizing green opportunities – while simultaneously, doing our part for the environment. Our customers can expect more sustainability-themed products and services from us in the coming year as we seek to entrench ourselves as a leader in this space.”

#GreenFinance #electricvehicles #greeneralternatives

Thanks for reading ESG News Asia! Subscribe for free to receive new posts and support our work.