The Electric Vehicle Loan offers a fixed interest rate of 6.29% per annum, effective from 27 February 2026. Notably, the loan comes with no establishment fees, and borrowers can make extra repayments or pay off the loan early without incurring penalties. This flexibility allows customers to manage their finances more effectively while supporting environmentally friendly transportation choices.
Eligible applicants include individuals aged 18 and over, residing in Australia as permanent residents or with a relevant work visa, and possessing a regular source of income. The loan is applicable for the purchase of fully electric vehicles, including cars and motorbikes, whether new or used. For new vehicles, the maximum loan term is seven years, while used vehicles up to seven years old have a maximum loan term of five years.
Bank Australia's initiative is timely, considering the growing interest in electric vehicles across the country. In 2025, electric vehicle sales in Australia saw a significant increase, with 156,000 EVs added to the roads, marking a 38% growth from the previous year. This surge is attributed to increased buyer choice, cost reductions, and a broader range of available models.
By offering competitive financing options, Bank Australia aims to lower the financial barriers associated with EV ownership. The bank's approach not only supports individual consumers in making environmentally conscious decisions but also contributes to the broader goal of reducing transport-related emissions in Australia.
Prospective borrowers can calculate their potential repayments using Bank Australia's online tools, providing transparency and aiding in informed decision-making. This initiative reflects a growing trend among financial institutions to support sustainable practices and offer products that align with environmental responsibility.
