Community First Credit Union has launched a new green personal loan at 3.99% p.a. (4.99% comparison rate*), a rate 'almost half' the previous rate.

The green loan can be used to fund borrowers' eco-friendly home installations, for example a solar hot water system or solar panels.

According to Community First, the product offers the "flexibility" of fee-free extra repayments. Customers can also redraw and pay out their loan early at no extra cost.

This green loan product is an unsecured personal loan for any amount from $1,000 and above, with a loan term of one to 10 years. A $10 monthly fee applies.

Green loans can be used to purchase the following:

  • Solar hot water systems and solar panels
  • Insulation
  • External awnings
  • Rainwater tanks
  • Double glazing
  • Grey water treatment systems
  • Energy efficient white goods and appliances
  • Electric motor vehicles

Community First chief, John Tancevski, said the credit union's award-winning green loans allow Australians to "make a personal contribution to a healthier eco-system".

"By launching a new Green loan with a rate of 3.99%p.a. we are not only ahead of the pack in this sector, we are also providing affordable funding for households to achieve sustainability success at home – a process that can deliver valuable energy savings," Mr Tancevski said.

Along with the new green loan, Community First has launched a "home improvement loan" with the same interest rate - 3.99% p.a. (comparison rate 4.99%*).

Mr Tanceveski said that this new loan is "a budget-friendly choice for home owners wanting to make home improvements on their owner occupied or investment property."

Image by Noah Buscher on Unsplash