More in S'pore taking up green car and home loans from banks

Local lenders drive momentum with preferential interest rates for more eco-friendly choices

- Sue-Ann Tan

Eco-friendly habits might have begun with cutting down on plastic bags and straws, but consumers here are now incorporating environmental awareness in a bigger way by taking out green” car and home loans.

Banks are on board and are offering preferential interest rates on such loans as incentives for more customers to go green.

The number of OCBC Bank’s eco-care car loans has surged since they were introduced in 2021 with loan value achieving an average annual growth rate of 170 per cent, the lender said on April 15.

The loan is extended to customers buying electric vehicles EVs) and offers a preferential interest rate of 2.48 per cent a year, 0.3 percentage points lower compared with loans for internal combustion engine cars.

OCEC said: As the EV market continues to mature, used EVs will become increasingly available and demand is expected to be healthy as they are a more affordable EV option.”

Mr Sunny Quek, the bank’s head of global consumer financial services, added: Three years ago when we introduced OCBC ecocare car loans, consumer interest in EVs was still low and knowledge about EVs was not as widespread.

“We wanted to do our part to get the momentum going by providing that additional incentive in the form of a preferential interest rate. It has helped to reduce the barriers to entry to owning EVs.”