Marlene Shiels

The organisation is to offer its new product – to be launched on Monday 11 October - in conjunction with a tree-planting initiative in the Highlands, in a move it expects to prove extremely popular with members.

Marlene Shiels, chief executive, said: “As a community-centred co-operative we need to set an example and we were increasingly being asked about green products. A lot of our lending is already for sustainable and environmental products and services and we need to recognise the importance our members place on key net-zero issues.

“The added bonus is that for every green loan we issue we will plant a tree in our own CCU Grove in the Highlands. This is part of the Trees for Life programme set up to rewild some of the most stunning parts of Scotland.”

The new green loan will be offered for home improvements such as insulation, double glazing, solar panels, boiler upgrades and switching to renewable energy. It will also be available for hybrid and electric cars, electric scooters and electric bikes.

Loan amounts start at £1,000 up to a maximum of £20,000 with a minimum term of 12 months.