The new loan is being launched with a variable interest rate of 4.95pc for amounts between €2,000 to a maximum of €100,000 repayable over between one and seven years.
The loan product is available to support businesses investing in a wide array of green and transition measures including renewable energy systems, building upgrades, forestry, green buildings (commercial and residential), zero-emission vehicles, circular economy and waste management.
The new Business Sustainability Loan is available to all businesses including farmers, clubs, trusts and charities
Applications can be made in branch, through advisers or on the phone, with quick decision-making and e-signing, the bank said.
Green lending has become a key focus for AIB, from mortgages to major corporate clients, as well as the new SME product.
Greening your business can help reduce costs
AIB’s managing director, retail banking, Geraldine Casey, said the new loan offering aims to support owners investing in the future of their business.
“Greening your business can help reduce costs, drive efficiencies and competitiveness, attract new customers and staff, and, vitally, protect businesses against future climate risks,” Ms Casey added.
To qualify for the new loans, customers will be required to provide evidence of eligibility such as an invoice or valid BER certificate, to confirm that the purpose of the loan request aligns to the criteria of the loan.
Agri businesses must show evidence of membership in one of a number of existing environmental schemes including Bord Bia Quality Assurance.
So-called green lending remains a niche, if growing, share of banks’ businesses.
Among consumers, the value of green personal loans jumped by 56.8pc since 2023 to €30.2m in the last quarter of 2024, figures published in May by the Banking and Payments Federation of Ireland (BPFI) showed.
The number of green loans increased by 48.7pc over the same time to a total of 1,326 in a three-month period.
The average green loan was “relatively high” at €22,795 in quarter four, which was more than twice the average of €10,425 for all loans.
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