Green Personal Loans

Even if you can’t afford solar panels upfront, you can play your part in saving the planet by comparing green loans from Savvy’s flexible lender panel.

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, updated on July 4th, 2024       

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The features and benefits of green loans

Compare low rates

You can fix your interest with a low rate tailored to your specific profile, with offers available from a range of trusted Australian lenders.

Borrow up to $75,000

Depending on the type of personal loan you apply for and what you’re looking to purchase, you can take out a loan as small as $2,000 all the way up to $75,000.

Select your repayment term

You also get to decide on whether you make weekly, fortnightly or monthly contributions towards your personal loan, which you can structure around your income.

Reduce your carbon footprint

The main purpose of green loans is to encourage more people to turn to greener solutions for their day-to-day, so they’ll help you make a difference to the planet in your own way.

No upfront payments

Unlike other types of financing, you won’t be required to pay anything upfront like a deposit or significant fee. Any major costs are built into your repayments.

Fast and easy applications

It only takes minutes to fill out and send off your application, after which you can be approved within 60 seconds and have your funds transferred within 24 hours.

Types of personal loan

Why compare personal loans through Savvy?

Frequently asked questions about green loans

Do I have to take out a green loan when financing solar panels?

No – even if your chosen lender doesn’t offer a green finance product specifically, you can still purchase solar panels or anything else with a standard personal loan. For instance, if you’re looking to take out a loan to cover other non-green things in addition to your panels, such as to consolidate debts or fund other home renovations, a personal loan will be just as effective in doing so. Aside from their intended purpose, the two are essentially the same product.

Can I pay out my loan early?

Yes – you can compare a range of loans with us from lenders who don’t charge any fees for additional instalments or early loan repayments. Doing so can help you save hundreds of dollars overall, if not $1,000 or more. In the green loan comparison process, you should always look to prioritise offers which afford you the freedom to pay above and beyond the minimum.

Do I have to own my home to take out green financing?

No – you don’t have to be a homeowner to take out a green loan. If you’re renting, you can still make purchases such as energy-efficient appliances and transportation, which can follow you should you move to a new location. However, solar panels or a rainwater tank are the sorts of developments that should be taken on and paid for by your landlord.

Who’s eligible to apply?

The general eligibility criteria that you’ll be required to meet to qualify for your loan are:

  • 18 years of age or older
  • An Australian citizen or permanent resident
  • Holding stable employment with consistent hours and pay
  • Earning a minimum of $20,000 annually from stable sources
  • Have no prior or existing bankruptcies or defaults

Green personal loans explained

What are green loans?

Green loans are a type of personal loan designed to be used for the purchase or installation of energy-efficient or ‘green’ products. While most personal loans are designed to be used essentially however the borrower wishes, these loans come with greater restrictions on how they can be utilised. This isn’t without reward, though; lenders will generally offer these loans at lower base rates and with fewer fees to concern yourself with as an incentive for borrowers to reduce their negative impact on the environment. As such, choosing to do so can save you money compared to if you wanted to buy an appliance which wasn’t environmentally friendly.

Aside from this, though, these loans are essentially the same as any other personal loan. The eligibility criteria for applicants, borrowing power and other conditions will typically mirror those of lenders’ standard personal finance products. In this respect, it’s just as important to compare them across a range of variables and with as many lenders as you can. Just because the product you’re applying for is marketed as a green loan doesn’t mean it’s the cheapest possible option for you. You can compare a variety of personal loans right here with Savvy to help you make a confident call on which is the best choice for you.

How can I use a green loan?

How you can use your green loan will depend on the lender you choose and your borrowing power. However, it’s important to know some of the main ways that people use these loans to help them take a step in the right direction for the sake of the environment. The ways you can use your green loan include:

Solar panels 

Perhaps the most common and well-known use for green financing is to aid in the installation of solar panels. You may wish to purchase these for a wide variety of purposes, such as distributing solar power throughout your home or heating your water more sustainably. Depending on the size of the system, though, you could pay anywhere between $2,500 and $12,000 for their installation, so a loan can come in handy to help you purchase one. 

Air conditioning 

If your current air conditioning system or heaters have been a mainstay in your home for a long time, chances are they’re not the most energy-efficient options going around. When shopping for new air conditioning systems, always keep an eye on the Energy Star rating so that you can get a better idea of how much it might cost to run. Over five to ten years, even a small difference in efficiency can save you hundreds, if not thousands, of dollars. 


Adding further insulation to your home is another way to help you reduce your energy consumption. By reinforcing the insulation in your walls, ceiling and floors, you’ll increase natural temperature retention in your home and cut down on potential air conditioning costs as a result. You can live in your home more comfortably without as much concern about money going down the drain whenever you turn the A/C on. 

Rainwater harvesting system 

Installing a rainwater tank allows you to conserve natural rainfall and recycle it for your own use across a variety of purposes. An entire harvesting system involves more than just a tank, with pipes installed leading into and out of your tank and effective filters to keep unwanted matter out of your tank. This can be used for anything from helping the running of washing machines and toilets to showering (if you filter it effectively).


You might also be looking to reduce the emissions your current car produces by purchasing a greener one, such as a hybrid or electric vehicle. You may wish to use a secured car loan to do this instead, but some lenders also offer green car loans. Alternatively, if you want to switch to an entirely green option, you can use a loan to purchase a high-end bicycle to help you get around without any emissions. 


In a similar way to air conditioning systems, it’s important to assess the appliances you currently have in your home and determine where you can do better when it comes to energy consumption. Look at the Energy Star rating on your washing machine, dishwasher, refrigerator and anything else which can be a significant drain on energy for your household. Because each of these can be costly, a loan can help you make up the difference and pay for it at a manageable speed for you. 

What else should I compare when choosing a green loan?

As mentioned, it’s just as important to compare these loans as any other personal finance offer, as you can still save a significant amount of money by opting for a more affordable loan found by surveying the market closely. There are many variables to consider when choosing the best green loan for your needs, including the following:

Interest rate

It may seem obvious, but it remains no less true: you can save hundreds of dollars, if not more, by simply choosing a loan with a lower interest rate than the others. Interest is perhaps the most important aspect of your personal loan to get right, as it serves as the primary cost factor over your term. Even looking at a small difference in rate can yield a substantial difference in overall cost. A $30,000 loan over five years at 5.5% p.a. would cost approximately $4,382 in interest but reducing the rate to 4.8% p.a. would save you more than $400 in that time.

It's not just important to get the lowest rate, but the right rate. Fixed interest is the most common when it comes to personal loans, which is locked in from the outset of the agreement to protect against any rate rises affecting your repayments and ensures budgeting around your instalments is more accurate. On the other hand, variable interest is left open across your loan repayments, which means it can either increase or decrease in line with how your lender’s rate fluctuates. The latter is less common and could end up costing more overall, but you should always have a clear idea of which is better for you.

Type of loan

You’ll also have to choose between a secured or unsecured green loan as part of the process of narrowing down your options. Unsecured finance is the most common, as there’s a wider range of lenders who offer them and their requirements aren’t as restrictive in terms of security. These loans are also faster to process, but they come with higher interest rates and fees. Secured loans, on the other hand, require you to put forward an asset such as your vehicle to serve as collateral for the loan which will, more often than not, net you a more affordable loan. Consider which is best for you before diving into the application process.

Loan amount

It’s just as important to trim down your options at an early stage to only include lenders and loans which enable you to borrow the amount you need. Not all lenders have the same minimum and maximum borrowing ranges, so if you find yourself falling on the higher or lower end of the spectrum (loans below $5,000 or above $50,000), you should carefully consider which options are best for you. 

Loan term

Similarly, it’s perhaps most important to ensure you’ll be able to pay off your loan at a speed which suits your situation. Not every lender will enable you to take seven years to repay your loan, which may be required if you’re applying for an especially large amount, while others can enforce minimums of three years even for small loans you were hoping to pay off in one.

Loan requirements

Each lender who offers green finance products will have a list of approved items that can be purchased with a green personal loan. By choosing to borrow from a particular lender, you’ll be required to stick within their list when it comes to financing your desired appliance or home development. Because of this, you should always compare different green loans based on whether their lender will enable you to purchase the item you’re looking for.

Added features

There are other features which can help make your repayment experience a comfortable one. Perhaps the most important is the ability to make additional repayments without any fees, as this gives you the flexibility to pay more at a time when you may have more funds at your disposal to dedicate to your repayments. You might also find a redraw facility useful, which enables you to withdraw from any extra payments made across your term instead of applying for further financing.


In most cases, you won’t have to worry about fees on your green loan, as many lenders offer products without additional charges, but you should still keep an eye on this to make sure you’re able to secure as affordable a loan as possible. The primary costs which may apply to loans are an establishment fee (up to $595) and ongoing costs (up to $10), but they’re often not charged by lenders offering standard loans, let alone those with green loans available. It’s important to try to avoid these wherever possible, as a five-year loan with $10 monthly fees will cost you $600 more than one without any ongoing charges.

What is the process of applying for a green loan?

The application process is essentially the same for green loans as it is for any other standard personal loan and is simple to follow as a result. You’ll be able to do this online from the comfort of your home or on the move via your smartphone. While some specifics may differ between lenders, the main points to follow when applying for financing are:

  • Compare your personal finance options (including with Savvy) to find the right loan and lender for your needs. If you decide to go with one of Savvy’s lenders, you can click straight through from our site to theirs.
  • Commence your application on your lender’s site. This will require you to gather all of the documentation required for assessment and check to ensure you’re considered eligible to take out a loan in the first place. Send it off and wait for a response from your lender.
  • Be notified of the outcome of your application. From there, you may need to supply further documentation or will receive a loan contract to sign digitally. Once you’ve returned this, your lender can advance the funds to you and you can move ahead with your energy-efficient purchase.

Helpful personal loan guides

Still looking for the right personal loan?

Personal loans come in all shapes and sizes, so read more about the ways you can use them, as well as how they might work for you.