The Commonwealth Bank of Australia has announced they will offering a ‘CommBank Green Loan’ product. This loan will offer families the ability to take a 10 year fixed loan of up to $20,000 for just 0.99% interest per year.
That rate is far lower than any personal loan and even much lower than the record low home load rates which are typically the cheapest form of finance.
If you’re a CommBank home loan customer, as in you have a mortgage with them (or move to them), then you’ll be able to get up to A$20,000 to spend on eligible small-scale renewables such as solar panels, battery packs and electric vehicle charging stations.
It is worth noting that the property is used as security for the loan, but given the cap on the size of the loan and the really low interest rate, I doubt many would default on that loan.
It seems there’s no limit on the number of combinations you could configure up to the $20,000 limit. This means you could put $13k towards home battery storage, another $6k for solar panels (and presumably inverter) and up to $1k on an electric vehicle charger.
Probably the biggest omission from this program is the ability to put use the Green Loan to buy a green car. As we know, electric cars come at a premium right now, which makes their affordability more challenging. If a family decided to spend the A$20k to reduce the purchase price of the car, and be happy to pay $1% on that money for the next 10 years, it could make an EV affordable today.
Overall this looks like a great new product, something I hope more banks offer to customers.
CommBank says this product is currently in the pilot stage and expected to launch in the coming months. If you’re interested in accessing it, you can register your interest in the Green Loan here.