LEEDS, England--(BUSINESS WIRE)--Leeds based Hitachi Personal Finance – www.hitachipersonalfinance.co.uk, has launched a new environmental personal loan with a rate as low as 4.9 per cent after evidence emerged that homeowners are shunning the Green Deal, which offers loans at an estimated rate of 7.5 per cent APR repaid over a period of up to 25 years
The Green Deal is facing a growing challenge from traditional lenders offering homeowners more flexible and better value loans. The new entrants will increase the pressure on the scheme, which recent reports* showed only 200 homes had signed up for Green Deal loans.
The policy, launched in January, offers long-term loans for energy-saving home improvement work. People in England, Scotland and Wales can spend the money on new boilers or insulation and repay it over a maximum of 25 years, through energy bills.
Commenting on the Green Deal loans, Gerald Grimes, managing director of Hitachi Personal Finance said: “Although we believe almost 19,000 homes have been assessed, the take up rate has been very low. We believe that consumers are seeking better rates on more flexible terms and our loans are designed to meet this need, without the added complexity of the Green deal.
“We have created this loan because there is a clear need for people to be able to improve their homes’ energy efficiency without saddling the house with a debt that may prove unattractive to buyers when homeowners come to sell. Our competitive interest rates will save homeowners hundreds of pounds whether they are borrowing £5,000 for solar panels or £17,000 for a ground source heat pump.”
Hitachi Personal Finance offers environmental home improvement loans from £2,500 to £20,000, for a term of 2 to 5 years. The competitive 5.4% APR Representative* is available on loans between £7,500 and £10,000. Around ten per cent of customers will be offered a lower interest rate of up to 4.9 per cent depending on their personal circumstances. The loans are available online with an instant decision and no arrangement fees.
Consumers have the choice to undertake a green deal assessment and, once they have been advised what work is most suitable, take the Green Deal finance at around 7 per cent APR or apply for a Hitachi Personal Finance environmental loan at 5.4 per cent representative.
For more information visit http://www.hitachipersonalfinance.co.uk/environmental-loan/
ENDS
Notes to editors:
* BBC report 7 June 2013.
A survey by Which? revealed 46 per cent of people would want the Green Deal loan paid off in full before they bought a property, while 21 per cent would reconsider buying a home if it had a Green Deal loan attached to it.
As part of the larger Hitachi Group, Hitachi Personal Finance is the UK’s retail finance leader, providing over one billion pounds of consumer lending each year to over 5 million UK customers. The company has over 30 year experience and works with some of the biggest names on the high street. It has supported retail in the UK by increasing lending year on year for the last five years.
Hitachi has always sought to transform markets through innovation. It is applying this culture to personal lending and is set to shake up the industry by doing things differently. For example, Hitachi Personal Finance is the first company to offer rates better than the advertised representative interest rate for the most creditworthy customers.
Service
- Hitachi expects one in ten customers will get a rate that is better than the advertised APR
- The application process is online, an online decision will be given immediately and an electronic loan agreement provided that can be signed electronically
- The funds can be in the applicant’s account within 24 hours
Loan Table
| Purpose | APR (1) | Min | Max | Term | ||||||||
| Car Loan | 5.4% | £2,500 | £25,000 | 2 - 5 years | ||||||||
| Environmental Loan | 5.4% | £2,500 | £20,000 | 2 -5 years | ||||||||
| Home Improvement | 5.4% | £2,500 | £20,000 | 2 - 5 years | ||||||||
| Personal Loan | 5.4% | £2,500 | £15,000 | 2 - 5 years |
(1)Representative APR for loan between £7,500 and £10,000 over 24-60 months
Applicant Criteria
- must be 18 or over
- hold a UK Bank or Building Society account
- have been a UK resident for at least 12 months
- be in permanent paid employment, self-employed or retired with a pension
- have a good credit history