Hoping to support sustainability, HSBC Malta launches green loans

HSBC Bank Malta has started offering so-called Green Loans hoping to drive more sustainable practices and support the drive to reduce carbon footprints, according to a press statement sent to Business Malta.

The package on offer has a fixed rate of 3.99% per annum for the whole duration of the loan. Those who apply during the months of October and November 2019 can make the most of a special discounted fixed rate of 3.8% per annum.

HSBC Malta explains that the Annual Percentage Rate of Charge (APRC) on a Green Loan of €10,000, repayable over seven years at a fixed borrowing rate of 3.8% per annum, will be 3.9%. “No processing fee is applicable for Green Loan applications. The loan will be repayable in 83 equal monthly instalments of €136.02 and one final instalment of €136.95. The total amount paid after seven years will be €11,426.61,” the press statement says.

HSBC has increased the cap of its Green Loans to a maximum of €50,000, which can be used for the purchase of electric cars, hybrid cars, solar panels, thermal insulation and other eco-friendly products.

Additionally, the bank has simplified its approval process: customers only need to provide an order form confirming that a deposit has been paid with the eventual loan then being credited to their respective bank account.

“The environment and its protection have always been priorities for HSBC Malta and are an integral part of how we run our business. This new offering is aimed at positioning HSBC Malta as the bank of choice for those sustainable-conscious persons who are interested in reducing their carbon footprint and transitioning to more environmentally sustainable practices,” said Gregory Inglott, Deputy Head Retail Banking and Wealth Management at HSBC Malta.