Over S$3.5 billion in ‘Eco-Care’ loans made since March 2021: OCBC
Michelle Zhu
MORE than S$3.5 billion in home, renovation and car loans were extended by OCBC under its “Eco-Care” loan programme since its introduction in March 2021, said the bank on Monday (Mar 27).
The programme aims to incentivise residential property and car owners towards more eco-friendly consumption habits and purchases.
Applicants for home and renovation loans under this programme will have to pass the Building and Construction Authority’s (BCA) Tropical Home Energy Efficiency Assessment – an online self-assessment tool predicting homes’ energy consumption – in order to qualify for preferential rates.
Loans at a promotional interest rate, along with free charging credits, are also offered to Eco-Care loan applicants with the purchase of any electric vehicle (EV).
Notably, home loans helped to drive the programme’s overall growth in 2022, increasing in value by four times compared to the previous year.
They also accounted for close to a quarter of all new home loans issued by OCBC in 2022 – which the bank said is “an encouraging sign that homeowners are actively incorporating sustainability in their lifestyles”.
A NEWSLETTER FOR YOU
Friday, 12.30 pm
ESG Insights
An exclusive weekly report on the latest environmental, social and governance issues.
In terms of renovation loans under the programme, OCBC noted that nearly two-thirds of its customers reside in an HDB flat.
The bank also said its Eco-Care car loans have fared well amid Singapore’s continued EV push, with the value of this sub-segment of loans surging by more than 400 per cent in 2022 from the previous year.
“By addressing the top two concerns of Singaporeans – cost and convenience – the take-up rate for OCBC Eco-Care loans has been better than expected and this upward trajectory should continue,” commented Sunny Quek, OCBC’s head of global consumer financial services.
“Despite inflationary pressures and expectations that the housing market may slow down this year, we are still targeting close to 10 per cent year-on-year growth in OCBC Eco-Care loans.”
Copyright SPH Media. All rights reserved.
