Bank Australia Business Loans - 5 Star Rated 2016
12 May 2016Bank Australia is a provider of business loans, banking products, home loans, personal loans, home and contents insurance, car insurance, health insurance, travel insurance, and financial advice.
“Responsible Banking. A bank all Australians can call their own.”
We congratulate Bank Australia on their Commercially Secured Overdraft product, which has received CANSTAR’s 5-star rating in 2016 for Business Loans in our Overdraft profile.
The inclusions below represent a selection of what is covered. Additional conditions may apply to different features. CANSTAR is not making any suggestion or recommendation to you about this product. Please ensure that you read the product disclosure statement to determine all the current policy options and inclusions for the product you are considering.
Resources on offer for small business owners
The 2016 Small Investments Round of the Bank Australia Impact Fund is open to existing Bank Australia business and community customers. Businesses can apply for funding of up to $10,000, for projects that will bring sustainable and meaningful impact to their communities.
Bank Australia is committed to investing up to 4% of its after-tax profits to projects focussed on:
- Environmental sustainability
- Non-profit / social enterprise capacity building
- Gender equality
- Reconciliation
- Disability
- Educational disadvantage
Features of Commercially Secured Overdraft
Key features of this business loan product, at time of writing, are:
- Loan Purpose: Available for any business or commercial purpose
- Loan Type: Revolving Credit, or Interest Only with no time limit
- Maximum Loan Term: 30 years
- Loan Amount: Minimum $10,000 – Maximum $99.9 million
- Repayment Options: Monthly
Additional repayments allowed
Repayments may be made via internet, lump sum, or phone - Facilities Available: ATM, cheque, EFTPOS, online banking, branch access, telephone banking, BPAY
- Card Access: Credit card attached to account
- Portable Mortgage: Portable loan, with no balloon payments at end of term
- Security Options: Cash, any business assets, or commercial property
- Availability: This product is currently available across Australia
Rates and Fees
Key rates and fees that apply to this business loan product at time of writing are:
- Advertised Rate: 19% variable rate. Rate does not vary by LVR. Option for fixed rate exists.
- Ongoing Fee: Nil
- Overdrawn Service Fee: $20
- Over-the-Counter Transaction Fee: 50%
- Portability Transfer Security Fee: $500
About Bank Australia
Bank Australia was founded in 1957 as CSIRO Co-operative Credit Society Ltd, with just 40 members. In their first year, they granted three loans totalling $525.
Formerly known by many names including bankmecu, Bank Australia is a 100% customer-owned bank, and profits are reinvested in the bank. Today, nearly 130,000 people and community sector organisations choose to bank with Bank Australia.
In 1984, it was the first credit co-operative to issue Visa credit cards in Victoria. They now offer access to over 3,000 rediATMs and 24 branches around the country, and you can also make deposits through Australia Post. Bank Australia also has a mobile smartphone app available for Apple idevices and Android devices.
As of 2015, half of the Board of Directors of Bank Australia are women, which is far better than the 20% rate reported by ASX boards in ANZ’s 2015 study.
How Bank Australia supports the community
- Uniforms for disadvantaged kids: Bank Australia supports State Schools’ Relief, which began when teachers noticed students stopped coming to school during the Great Depression because they couldn’t afford to buy uniforms. In 2015, State Schools’ Relief dressed 20,500 kids so they could go to school without getting into trouble about their uniform. Last year, they also began providing expensive maths calculators to senior high school students who otherwise couldn’t study Maths B, Maths C, or the Sciences.
- Bank Australia Impact Fund: The Bank Australia Impact Fund makes investments of 4% of its profits on behalf of their customers, for initiatives that contribute to measurable environmental, social, and economic outcomes. Their annual Small Investments Round suppprojects run by Bank Australia customers.
- Bridging the gap for Indigenous students: In 2010, Bank Australia launched their Reconciliation Action Plan, and in 2011 they began supporting the CSIRO Science Pathways for Indigenous Communities program in schools.
- All Australian jobs: Bank Australia is committed to keeping all of its jobs in Australia. Their call centre and lending centre are both located in regional Victoria.
How Bank Australia protects the environment
- Award-winning approach: In 2009, the bank won the Victorian Premier’s Sustainability Award for their many sustainability measures, such as the following…
- Bank Australia Conservation Reserve: Bank Australia’s Conservation Reserve is a world first for a financial institution – a private nature reserve where they work with conservationists and local community groups to offset the impact of their products on the environment. They purchased the first of their five properties in 2008 in West Wimmera, Victoria. The land is habitat for endangered species including the South-Eastern Red-Tailed Black Cockatoo, the Golden Sun Moth, and the Growling Grass-Frog.
- Carbon neutral: Bank Australia has been carbon neutral since 2013. More than 10% of power used at head office is generated by solar panels on the roof. In 2004, they began offsetting carbon emissions on cars they financed.
- Water conservation: Head office’s gardens are watered and toilets are flushed by rainwater tanks on the roof.
- Biodiversity: In 2008, the bank began offering biodiversity offsets for new home construction loans.
Please note that CANSTAR is an information provider and in giving you product information CANSTAR is not making any suggestion or recommendation about a particular credit product. If you decided to apply for a loan, you will deal directly with a financial institution, and not with CANSTAR. Rates and product information should be confirmed with the relevant financial institution. For more information, read our detailed disclosure, important notes and additional information.
