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What is a Green Car Loan?

Plenty of Australians are switching to hybrid and electric cars – also known as green cars – to help the planet. Driving these types of cars can get you from point A to point B while staying energy efficient.

To make switching to an electric or hybrid car easier, you can apply for a Green Car Loan. This type of loan is specifically designed to help you buy a green car, often with the added incentive of lower interest rates. You can also refinance to a green car loan if you meet the criteria.

If you’ve been thinking about buying an electric or hybrid with a green car loan, you’ve come to the right place. We’re going to give you a rundown on everything there is to know.

What is a green car loan?

A green car loan is a type of secured car loan for drivers who want to reduce their emissions by purchasing a hybrid or electric car. Green cars may be hybrid or electric, which makes them a lot better for the environment than vehicles that run entirely on fuel.

One of the benefits of taking out a green car loan is that the interest rate tends to be lower than other car loans. This lower rate can help encourage people to buy green cars instead of fuel-only ones.

Our Green Car Loan has a range of features to help you pay it off, including:

  • A personalised interest rate
  • No monthly fees
  • Unlimited extra repayments
  • No penalties for early payouts

Another savvy thing about our green car loans is that you can use the money to buy a home-charging station to go with your new hybrid or electric vehicle. This charging station must have a ‘single-phase’ or ‘three-phase’ dedicated wall box.

What are the benefits of an electric or hybrid car?

Driving a green car has many benefits. The obvious one is that electric and hybrid cars are better for the environment. According to the Climate Council, transport is the third-largest contributor to emissions in Australia. But by driving a green car, you’re taking a positive step towards reducing them.

Another great thing about green cars is that they’re more efficient than fuel-only ones. Less petrol equals more savings for you.

And depending on where you live, your state or territory might offer electric car rebates. It’s a good idea to see if you’re eligible for one of these rebates in your state or territory with these links:

It’s important to know that the rebate application status can change from time to time, depending on the state and territory that you’re in.

How can you apply for our Green Car Loan?

Applying for our Green Car Loan is easy. To start, check that the car you want to buy is listed on the Australian Government's Green Vehicle Guide. Once you’ve checked that your future green car is eligible, then you can apply for our Green Car Loan.

To get prepared for the application process, you need your ID, income and expenses information, and details about your car, such as the model. And to make things even easier, you can apply for one of our Green Car Loans online. It only takes around 10 minutes to complete.

We will send you an email to confirm the outcome of your application. If you’re successful, just remember that you’ll have to pay a fee for establishing the loan and security administration when it’s time for settlement – which is when you get the money from the loan to buy a car.

After that’s all done and dusted, you can go ahead and buy your new set of wheels.

What are the eligibility criteria?

There are four boxes you’ll have to tick to apply for our Green Car Loan:

  1. You need to be willing to provide the new or used green car, which needs to be under seven years old, as security in exchange for a lower rate.
  2. You need to confirm that the green car is for personal use only.
  3. Your home charging station must have a ‘single-phase’ or ‘three-phase’ dedicated wall box, which will be mentioned on the invoice of your green car.
  4. The vehicle must have either an electric or hybrid engine; and be listed on the Australian Government’s Green Vehicle Guide.

Can you refinance a green car loan?

You can refinance any type of car loan – including a green car loan. Refinancing is when you apply for a new car loan at a lower interest rate, where you’ll use the new funds to pay out your existing loan. You’ll then make repayments on the new car loan at the lower rate.

What other green loans are there?

Did you know that there are other green loans you can take out? If you want to reduce your carbon footprint at home as well as on the road, then you can take out an Unsecured Green Personal Loan. This type of loan is great if you want to upgrade your home with products that can help reduce emissions. These include solar panels, battery packs and solar hot water or heat pump systems.

Learn more about car buying

Our articles can help you get on the road towards your dream car.

How to get a car loan

If you want to buy a car, then taking out a car loan can make all the difference. Learn everything you need to know about getting a car loan in our article.

Read more
How to refinance a car loan

Did you know that you can refinance your car loan? And that there are some great benefits in doing so? We’re going to explore these and more in our article.

Read more
How to pay off your car loan quickly

From having a budget to automating payments, discover actionable ways to pay off your car loan faster. Unlock financial freedom with clever repayment methods.

Read more
Features of our Green Car Loan
  • $0 monthly & annual fees
  • Unlimited extra repayments
  • A personalised rate* tailored to your credit score
  • No penalties for early payout
  • Personalised interest rate for green purchases

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Green Car Loan
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Important Information

This is general information and does not take into account your objectives, financial situation or needs.

Loans are issued by Great Southern Bank, a business name of Credit Union Australia Ltd ABN 44 087 650 959, AFSL and Australian Credit Licence 238317. Lending criteria, limits, conditions and fees apply.

Rates current as at 9 June 2024 and subject to change.

Your loan contract will state the minimum monthly repayment amount. You can arrange with us to make repayments on a weekly or fortnightly basis.

1. Comparison rate examples are accurate for a personal loan amount of $30,000 secured loan over a term of 5 years. WARNING: Comparison rates are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

2. Comparison rate examples are accurate for a personal loan amount of $30,000 unsecured loan over a term of 5 years. WARNING: Comparison rates are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

3. A $200 minimum withdrawal amount applies for redraws conducted in-branch. Redraw facility is available for Great Southern Bank Personal Loan products on offer from 6 June 2017.

*The rate you are offered is calculated based on your personal circumstances and credit history. A few different factors are considered, including:

  • Your credit score.
  • Information provided in your application. Existing loans.
  • The loan amount and your perceived ability to repay the loan.

Your personalised rate won’t be confirmed until you receive an offer from us (if approved) and is subject change before your loan settles.