Consumers increasingly are looking at hybrid and electric vehicles to help to reduce carbon emissions. Now, Banorte is making it easier to purchase them through a new offering – Green Auto Loan.
Banorte said those loans are aimed encouraging shoppers to consider environmentally friendly vehicles by offering interest rate discounts, extended repayment terms and other benefits, making these autos more affordable for borrowers.
The offering marks the latest in the bank’s growing line of sustainable products, aligned with its efforts, as supporters of the Principles of Responsible Banking and the UN Net Zero Banking Alliance, to promote sustainable consumption practices among its customers.
“Green financing shows Banorte’s commitment to a sustainable strategy and to improving the quality of life of Mexican families,” Banorte Chairman Carlos Hank González said. “Green financing is the door for the financial industry to do its part in reversing climate change.”
The Green Auto Loan is one of the most competitive in the market, as it can be applied to purchase both new and pre-owned vehicles.
These function similarly to a traditional car loan: Car buyers apply through the bank, receive an interest rate based on credit scores and other factors, select a repayment term and make regular payments with interest throughout the term of the loan.
The new Banorte program offers rates starting at 9.99% with a 1.5% origination fee and special insurance rates for hybrid and electric cars. That’s lower than the rate for traditional cars of 11% or more, while the average opening commission for a car is 2.5%.
Banorte highlighted that owners of hybrid and electric cars also are exempt from taxes for new cars, and in different parts of the country, exempt from the Mandatory Vehicle Verification Program for eight years.
Environmental experts predict green auto loans will surge in popularity as more drivers take advantage of benefits hybrid and electric vehicles, including lower carbon dioxide emissions, less maintenance, fewer fuel stops and quieter engines.
In recent years, Carlos Hank González has prioritized sustainability across Banorte’s business development and innovations. An ESG champion, he has focused on strategies and operations to generate value for all stakeholders while ensuring efforts are environmentally forward.
That has included a program to boost renewable energy projects and development of sustainable investment fund.
“Banorte has been a pioneer in Mexico in implementing a social and environmental risk management system that evaluates risks and possible impacts on the environment and communities before financing projects,” Carlos Hank González said at an International Chamber of Commerce summit last year. “It’s the kind of bold initiative businesses should be encouraged to adopt to help mitigate climate risks and generate a positive impact for people and nature.”