THE Guyana Bank for Trade and Industry (GBTI) has launched its Green Loans scheme for items and projects aimed at reducing energy consumption and greenhouse gas emissions.

But the customer must satisfy the bank that the purpose of the loan is low-carbon driven.

The launch took place on Wednesday last at Diamond on the East Bank of Demerara, coinciding with the launch of GBTI’s latest branch there.

Financing under the Green Loans scheme will be available for solar energy projects, water treatment plants, water filters, hybrid motor vehicles, energy saving appliances, solar panels, radios, lights, fans, flashlights, chargers, camping lamps, portable solar mobile device chargers, laptops, air filters, wind-powered projects hand-powered machines, low-carbon economic investments, like high-end fruits and vegetables and aquaculture.

According to the bank, borrowers will enjoy competitive interest rates calculated using the reducing balance method, fast approvals, 25 percent discount on lending services fees, a one to six month moratorium on installment payments where applicable.

The bank said there will be no late payment fees and no prepayment penalties.

Customers are required to put up equity in the amount of ten percent and there will be an interest rate of between eight and ten percent per annum, with the maximum repayment period being 60 months.

For loans up to $1 million, the interest rate will be eight percent. Up to $10 million, interest will be nine percent; up to $50 million, ten percent; and above $50 million eleven percent. The bank will be accepting, as forms of collateral, mortgages, debentures, bills of sale, shares in a traded company and cash.

President Bharrat Jagdeo, in his address at the opening of the branch, commended the GBTI for its reputation for being a leader in the sector when it came to innovations, and with that, he congratulated the bank for taking the initiative of offering low carbon-focused loans.

“We are not required to cap our emissions [being a non-Annexe 1 country] but the environmental sector will play an important role in Guyana. We have to grab hold of these opportunities…to make a sustainable shift, lifestyle change is necessary,” said the President – who is also ‘Champion of the Earth’.