Environmental concerns Australia’s biggest problem, pushing lenders to go green

Environmental concerns Australia’s biggest problem, pushing lenders to go green

In Roy Morgan’s Most Important Issues poll it had been found that Australians are becoming increasingly worried about the state of the environment.

According to this recent research, economic issues are now less worrying to our nation than environmental issues, for the first time since the devastating Queensland floods in February 2011.

Climate change a major factor

In addition to the research, more than 400,000 Australians have signed a petition urging the government to declare a climate emergency, reflecting serious concerns about the impacts of climate change on our “megadiverse” nation.

Source: Roy Morgan Australia

“This is the first time for over eight years Australians have thought so prominently about the environment,” said Roy Morgan CEO, Michele Levine.

“Concerns about Global warming and Climate change are the most prominent issue mentioned but there is also significant concern about the Drought and water conservation and management in the parched Murray-Darling Basin that are widely referred to as the biggest problems facing Australia.”

In the face of such concerns, lenders in the personal finance industry are turning green.

Lenders go green in support of eco-conscious spending

Whilst financial products themselves may not have a large carbon footprint, the capital they lend can end up funding projects that do.

As such, some proactive lenders are now providing green personal loans in an effort to reduce carbon emissions and encourage conscious investment in sustainable technologies.

So, if you’re looking to update your home with solar panels, energy efficient hot water systems or other clean energy products, you may want to take a closer look at the personal loans below.

Lender Product Name Advertised Rate Comparison Rate Minimum Amount Upfront Fee
Police bank Green Loan 6.49% 6.63% $1,000 $98
Community First Credit Union Green Personal Loan 5.99% 6.26% $1,000 $195
Bendigo Bank Secured Green Personal Loan 6.79% 7.21% $2,000 $150
Ratesetter Green Loan 6.81% 8.92% $2,000 from $300
Southern Cross Credit Union Green Personal Loan 7.29% 7.47% $10,000 $125
Bank first Green Personal Loan 9.00% 10.04% $10,000 $150
Bendigo Bank Unsecured Green Personal Loan 11.79% 12.84% $2,000 $150

Data accurate as at 21st November 2019. Be sure to check the PDS and any additional fees and charges with the lender before you sign on the dotted line.

woman holding soil and plant

Lenders refusing to invest in fossil fuels

If you’re not in the market for a personal loan, but you still want to ensure you’re banking sustainably, there are many lenders that refuse to provide finance to the fossil fuel industry.

As a large portion of carbon emissions are as a result of burning fossil fuels, supporting these financial institutions who have never invested in fossil fuel projects, could be a good place to start.

  • Adelaide Bank
  • Australian Defence Credit Union
  • Auswide Bank
  • Bananacoast Community Credit Union
  • Bank Australia
  • Bank First
  • Bank of us (formerly B&E)
  • BankVic
  • BDCU Alliance Bank
  • Bendigo Bank
  • Beyond Bank
  • Cape Credit Union
  • Community First Credit Union
  • Credit Union SA
  • CUA (Credit Union Australia)
  • Defence Bank
  • Delphi Bank
  • ECU
  • Firefighters Mutual Bank (formerly Fire Board (NSW) Employees Credit Union)
  • First Choice Credit Union
  • G&C Mutual Bank
  • Gateway Credit Union
  • Greater Bank
  • Goulburn Murray Credit Union
  • Health Professionals Bank
  • Heritage Bank
  • Horizon Credit Union
  • Hume Bank
  • Hunter United
  • IMB
  • Intech Credit Union
  • Laboratories Credit Union (LCU)
  • Maitland Mutual Building Society
  • Northern Beaches Credit Union
  • Maleny Credit Union (MCU)
  • Maritime, Mining & Power Credit Union
  • ME Bank
  • MyState
  • Newcastle Permanent
  • P&N Bank
  • People's Choice Credit Union
  • Police Bank
  • Police Credit Union
  • Qudos Bank
  • QBANK (Formerly Queensland Police Credit Union)
  • QT Mutual Bank
  • Queenslanders Credit Union
  • Rabobank
  • Regional Australia Bank
  • Rural Bank
  • Select Mutual Banking
  • Southern Cross Credit Union
  • South West Slopes Credit Union
  • Summerland Credit Union
  • Teachers Mutual Bank
  • Transport Mutual Credit Union
  • UniBank (formerly unicredit)

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Learn more about personal loans

Where can I get a personal loan?

The Australian personal loans market contains dozens of lenders offering several hundred different products. Personal loans are available through a range of institutions, including:

There are three main ways to access personal loans. You can go through a comparison website, such as RateCity. You can use a finance broker. Or you can directly contact the lender.

Will comprehensive credit reporting change my credit score?

Comprehensive credit reporting may change your credit score, either positively or negatively, depending on an individual's situation.

Under comprehensive credit reporting, credit providers will share more information, both positive and negative, about how you and other Australians manage credit products. That means credit reporting bureaus will be able to make a more thorough assessment of everyone’s credit behaviour. That will lead to higher scores for some consumers and lower scores for others.

Can I get guaranteed approval for a bad credit personal loan?

Few, if any, lenders would be willing to give guaranteed approval for a bad credit personal loan. Borrowers with bad credit histories can have more complicated financial circumstances than other borrowers, so lenders will want time to study your application. 

It’s all about risk. When someone applies for a personal loan, the lender evaluates how likely that borrower would be to repay the money. Lenders are more willing to give personal loans to borrowers with good credit than bad credit because there’s a higher likelihood that the personal loan will be repaid. 

So a borrower with good credit is more likely to have a loan approved and to be approved faster, while a borrower with bad credit is less likely to have a loan approved and, if they are approved, may be approved slower.

How do I know if I've got a bad credit history?

You can find out what your credit history looks like by accessing what's known as your credit rating or credit score. You're also able to check your credit report for free once per year.

Are there emergency loans with no credit checks?

While many personal loans require a credit check as part of the application process, some personal loans and payday loans have no credit checks, which may appeal to some borrowers with a bad credit score.

Keep in mind that even if a loan is available with no credit check, the lender will likely want to confirm that you can afford the repayments on your current income.

Are there low doc personal loans?

Self-employed borrowers may be eligible for low doc personal loans, which require less documentation in their application process than many other personal loan options.

It’s important to remember that though low doc personal loans may require less paperwork, you may need to provide additional security, or pay a higher interest rate.

Can unemployed single parents get personal loans?

It can be more difficult for unemployed borrowers to successfully apply for a personal loan. Most lenders require borrowers to have a regular income available to cover the cost of loan repayments.

If you’re self-employed, or if less than half of your income comes from Centrelink, you may not be eligible for some personal loan options. Consider contacting the lender before applying.

What do single parents need for a personal loan application?

Much like applying for other personal loans, applying for personal loans for single parents will likely require the following:

  • Proof of identity
  • Proof of residence
  • Proof of income
  • Details of assets (e.g. car, home)
  • Details of liabilities (e.g. credit cards, other loans)
  • Loan amount
  • Loan term

Can students with no credit history get loans?

It is possible for students with no available history of borrowing or managing money to get a personal loan, though it may be more difficult as well as expensive than for borrowers with a good credit history.

Having no credit history means having no credit score. While many lenders may consider having no credit score to be better than having a bad credit score, they may still consider it riskier to lend to an unknown borrower and may charge higher interest rates or fees than to borrowers with good credit scores.

Can you pay off a quick loan early?

Many lenders will allow you to make extra repayments onto a quick personal loan when you can afford them, or even exit the loan early, which can help reduce the total interest you are charged. Be sure to check your quick loan’s terms and conditions, as some lenders charge early exit fees for paying off a loan ahead of schedule.

Is it hard to improve your credit score?

It can be hard to improve your credit score, as it usually requires sacrifice and discipline, but hard doesn’t necessarily mean complicated. Some simple ways you can give your credit score a boost include closing extra credit cards, reducing your credit card limit, pay off any loans and make loan repayments on time.

As a general rule, the lower your credit score, the more remedies you can apply and the greater the scope for improvement.

Can I get a $2000 loan on Centrelink?

If more than half of your income comes from Centrelink benefits, it may be more difficult to have a $2000 loan application approved. Many lenders will check if you can afford a loan’s repayments on the income from your job before they’ll approve an application, and many won’t count Centrelink payments when assessing your income for this purpose.

Some lenders may offer $2000 loans to borrowers on Centrelink – consider contacting potential lenders to check before applying.

What is the average interest rate on personal loans for single parents?

Like other types of personal loans, the average interest rate for personal loans for single parents changes regularly, as lenders add, remove, and vary their loan offers. The interest rate you’ll receive may depend on a range of different factors, including your loan amount, loan term, security, income, and credit score.

What can I use a bad credit personal loan for?

Generally, bad credit personal loans can be used for the following purposes:

  • Debt consolidation
  • Paying bills
  • Buying vehicles
  • Moving expenses
  • Holidays
  • Weddings
  • Education

Some lenders restrict how their bad credit personal loans can be used as part of their commitment to responsible lending – be sure to check before applying.