Which banks offer green loans?

Many lenders in Australia offer green loans, including MOVE Bank, Bendigo Bank and loans.com.au, which you can use to purchase an eco-friendly vehicle.

Are green loans worth it?

Green car loans can come with competitive interest rates and are a worthwhile option if you're thinking about buying a more environmentally-friendly vehicle.

Green Car Loans: Find Finance for Electric & Hybrid Cars

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Product	Finder Score	Interest Rate (p.a.)	Comp. Rate (p.a.)	Application Fee	Monthly Fee	Monthly Repayment
loans.com.au - Green Car Loan Variable	Finder Score 8.4 Great	Interest Rate (p.a.) 5.84%	Comp. Rate (p.a.) 6.97%	Application Fee $400	Monthly Fee $8	Monthly Repayment $627.13	Go to site More info Compare	loading Fetching your data...
RACV Green Car Loan	Finder Score 8.8 Great	Interest Rate (p.a.) 5.49% to 16.49%	Comp. Rate (p.a.) 6.18% to 17.26%	Application Fee $499	Monthly Fee $0	Monthly Repayment $618.89	More info Compare	loading Fetching your data...
Heritage Bank Green Car Loan	Finder Score 9.6 Excellent	Interest Rate (p.a.) 5.69%	Comp. Rate (p.a.) 6.04%	Application Fee $250	Monthly Fee $0	Monthly Repayment $613.2	Compare	loading Fetching your data...
Queensland Country Bank Green Car Loan	Finder Score 9.7 Excellent	Interest Rate (p.a.) 5.84%	Comp. Rate (p.a.) 6.13%	Application Fee $150	Monthly Fee	Monthly Repayment $611.54	Compare	loading Fetching your data...
Australian Mutual Bank Green Car Loan	Finder Score 9.7 Excellent	Interest Rate (p.a.) 6.45%	Comp. Rate (p.a.) 6.45%	Application Fee $0	Monthly Fee $0	Monthly Repayment $612.52	Compare	loading Fetching your data...
Bank First Green Car Loan Fixed	Finder Score 8.6 Great	Interest Rate (p.a.) 9.29%	Comp. Rate (p.a.) 9.57%	Application Fee $195	Monthly Fee $0	Monthly Repayment $644.92	Compare	loading Fetching your data...
RACQ Bank Green Car Loan	Finder Score 9.8 Excellent	Interest Rate (p.a.) 5.99%	Comp. Rate (p.a.) 5.99%	Application Fee $0	Monthly Fee $0	Monthly Repayment $608.35	Compare	loading Fetching your data...
Transport Mutual CU GreenRoad Loan	Finder Score 9.3 Excellent	Interest Rate (p.a.) 6.89%	Comp. Rate (p.a.) 7.2%	Application Fee $220	Monthly Fee $0	Monthly Repayment $623.32	Compare	loading Fetching your data...
Bank First Discounted Green Car Loan	Finder Score 9.5 Excellent	Interest Rate (p.a.) 6.29%	Comp. Rate (p.a.) 7.62%	Application Fee $195	Monthly Fee $0	Monthly Repayment $617.03	Compare	loading Fetching your data...
Community First Bank Green Car Loan - Fixed	Finder Score 8.2 Great	Interest Rate (p.a.) 5.89%	Comp. Rate (p.a.) 6.94%	Application Fee $249	Monthly Fee $10	Monthly Repayment $625.01	Compare	loading Fetching your data...
Great Southern Bank Green Car Loan	Finder Score 9.3 Excellent	Interest Rate (p.a.) 5.79% to 12.24%	Comp. Rate (p.a.) 5.93% to 12.39%	Application Fee $100	Monthly Fee $0	Monthly Repayment $609.57	Compare	loading Fetching your data...
Community First Bank Green Car Loan - Variable	Finder Score 8.2 Great	Interest Rate (p.a.) 5.89%	Comp. Rate (p.a.) 6.94%	Application Fee $249	Monthly Fee $10	Monthly Repayment $625.01	Compare	loading Fetching your data...

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Finder Score for car loans

To make comparing car loans even easier we came up with the Finder Score. Interest rates, fees and features across 200+ car loan products and 100+ lenders are all weighted and scaled to produce a score out of 10. The higher the score, the more competitive the product.

Read the full Finder Score methodology

After a hybrid or an electric car?

You can save money with a green car loan in Australia plus do your part for the environment.

Many lenders now offer better rates on car loans for vehicles that are considered environmentally friendly.

Green car loans offer lower interest rates if you're buying an eligible electric or hybrid vehicle, which could save you hundreds over the loan term.
Check your car's eligibility carefully—each lender has its own list of approved models and criteria.
If you're considering a green loan, check whether it comes with restrictions like minimum loan amounts or shorter terms, which can affect your repayments.

What is a green car loan?

A green car loan is any vehicle finance option available for cars that are better for the environment, generally meaning those with lower than average emissions. These include hybrid and electric vehicles, as well as normal cars with noticeably better fuel efficiency.

Finder survey: Would Australians of different ages consider a green car loan to buy an EV?

Response	Gen Z	Gen Y	Gen X	Baby Boomers
No	58.43%	49.18%	56.91%	74.15%
Yes	41.57%	50.82%	43.09%	25.85%

Source: Finder survey by Pure Profile of 1113 Australians, December 2023

WATCH: How to save money on an eco-friendly vehicle

How does a green car loan work?

A green car loan effectively works the same as any other car loan. If you apply for a loan for a vehicle that meets the lender's definition of environmentally friendly, you will generally receive an interest rate discount of 0.5%-1% and may be exempt from certain fees.

In addition to a discounted rate, some lenders will also offset your carbon emissions for the term of the loan to help reduce your carbon footprint.

You will generally apply for a green car loan like you would any other car loan, and simply select the green car loan option during the application process.

How do I know which cars can be used on a green car loan?

While the list of eligible vehicles will vary by lender, a car may be eligible if it meets one or more of the following requirements:

It is a new vehicle
It is a hybrid or electric vehicle
It is more fuel efficient than the average car in its class

Some of the popular car models that may be eligible include:

Battery Electric Vehicles (BEVs)

Tesla Model Y
Tesla Model 3
BYD Atto 3
BYD Seal
BYD Dolphin
MG4 EV
Hyundai Ioniq 5
Hyundai Kona Electric
Kia EV6
Polestar 2
Nissan Leaf
BMW i4
Mercedes-Benz EQB
Volvo XC40 Recharge
Cupra Born

Plug-in Hybrids (PHEVs)
Mitsubishi Outlander PHEV
Kia Sorento PHEV
Hyundai Santa Fe PHEV
MG HS Plus EV
Volvo XC60 Recharge
BMW X5 xDrive45e
Ford Escape PHEV
Mini Countryman SE All4

Hybrid Vehicles (HEVs)
Toyota Corolla Hybrid
Toyota Camry Hybrid
Toyota RAV4 Hybrid
Honda Accord Hybrid
Hyundai Ioniq Hybrid
Kia Niro Hybrid
Lexus UX 250h
Subaru Forester Hybrid

However, you will need to check with the specific lender to see if a certain vehicle is eligible, and not all versions of the same model will necessarily meet the criteria.

If you're just searching for a car that has a limited environmental impact, you can use the Government Green Vehicle Guide to find a vehicle.

What are the benefits of a green car loan?

Interest rate discount. Most green car loans offer you a reduced rate as part of the loan.
Saving on car running costs. As green cars are more fuel efficient, you will likely be paying less to drive your car.
Reducing emissions. Green cars also have lower-than-average CO2 emissions and help protect air quality and the environment.

Frequently Asked Questions

Thank you for your feedback!

Written by

Thomas Stelzer

Journalist

Tom Stelzer is a journalist with 6 years of experience covering personal finance, specialising in investment and cryptocurrency. With a Master of Media Arts and Production and a Bachelor of Communications in Journalism from the University of Technology Sydney, Tom provides expert analysis on digital assets and market trends, helping readers navigate the fast-evolving world of finance. See full bio

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