Australia: Personal loans funding energy efficient home improvements

According to RateSetter Australia’s CEO, Daniel Foggo, the peer-to-peer lender’s Green Loan Lending Market is driving the increase in loans for energy efficient upgrades to homes. The Green Loan Lending Market is a platform which matches lenders with ‘creditworthy’ borrowers who are looking to invest in renewable energy projects and energy-efficient products for their homes and businesses.

Foggo believes the initiative has been extremely successful, “with almost 1,000 homeowners using low-cost finance through RateSetter to purchase energy efficient and renewable energy products to improve their home … homeowners will often be better off in year one through reduced energy bills and recoup their investment in less than 10 years”.

RFi Group data supports the premise behind this initiative, with data from March 2018 indicating that outside cars and holidays, home improvements are the fifth most common reasons for personal loans, with 1 in 10 being taken out for this purpose.

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