What are green loans?

Green loans are designed to finance projects that enable borrowers to achieve their sustainability ambitions.

Green loans are a form of finance specifically designed to fund projects which contribute towards a sustainability goal. Whether you are looking to develop energy-efficient housing, reduce the impact of your current stock or drive your energy systems towards net zero, we are keen to help you.

Sustainability is becoming increasingly important against the backdrop of net zero commitments, environmental change, higher energy costs and increasing regulation. The drive towards a more sustainable future is shaping the actions of business, charities and governments, and transforming the way we live.

We recognise our role in facilitating and financing that sustainable future. At CAF Bank, sustainable finance simply means investments and lending that actively consider the environmental, social and governance (ESG) impacts of activities, and using finance to achieve sustainable outcomes.

How green loans are used

Our Green Loans are designed to help charities and social purpose enterprises achieve their sustainability ambitions, and to direct funds towards environmentally beneficial projects - helping us work towards a more sustainable future for all.

Here are a few ways that our Green Loans could help you to deliver your sustainability ambitions:

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Building or retrofitting for energy efficiency

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Reducing emissions

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Promoting biodiversity and environmental standards

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Transitioning to sustainable energy

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Delivering sustainable waste management

What projects are eligible?

For a project to qualify for a CAF Bank Green Loan it must feature within our Eligible List, which is available on request. Our Green Loans are the subject of external review and have been designed to align with the Loan Market Association’s Green Loan Principles.

Applications for our Green Loans are welcome from UK-based charities and social purpose enterprises in support of their green goals. A Green Loan can be used to finance:

  • 'Fabric First' insulation retrofits
  • New developments meeting EPC A or B standards, or Bream 'Excellent'
  • Sustainable energy systems such as solar or air source heat pumps.

To find out if your project may be eligible for a Green Loan, get in touch with our friendly team of lending experts.
Installing solar panels

Cost-effective green loans

How we support borrowers

We treat our clients’ goals as our own and work closely with every borrower to ensure we fully understand their sustainability aims, business model and project plan. Here's what we offer:

  • Repayment terms up to 25 years
  • Loan amounts of between £150,000 and £10m
  • A reduced cost of borrowing
  • Support of a dedicated Relationship Director.

Borrowing from us doesn’t just mean choosing a bank that shares your values and measures of success. It means teaming up with a lending partner that exists to help strengthen the resilience of the charity sector. We’re to help you to get your project off the ground, so you can deliver your sustainability goals.

Here to help you

Our friendly team of lending experts is on-hand to help with any questions you have.

We start by listening and taking the time to get to know you and your project. Then, if we think a CAF Bank Green Loan could be right for you, we’ll ask you for more information. 

Get in touch

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CAF Bank loans are non-regulated products.

Loan applications subject to credit assessment. Security will be required.

Charity assets may be at risk if you do not keep up with the repayments for a mortgage, loan or any other debt secured on them.

If you're thinking of consolidating existing borrowing, you should be aware that you may be extending the term of the debt and increasing the total amount you pay.

This product is provided by CAF Bank Ltd.

CAF Bank Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register number: 204451).

CAF Bank Limited Registered office is 25 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4JQ. Registered in England and Wales under number 1837656.