To make things easier for borrowers in the current economic times, Westpac Banking Corporation is all set to introduce 'green loans', a form of interest free loans for amount up-to $10,000.

As confirmed by the bank on Sunday, the Australian Government's Green Loans Program will give homeowners a chance to effectively improve their use of energy and water.

"The Green Loans Program assists families to install solar, water saving and energy efficient products to reduce greenhouse gas emissions", Westpac said in a statement. "It also has the potential to help around 360,000 Australian households save on energy and water bills".

Available with effect from November 16, the green loans have also been designated as "an investment into the future" by Peter Hanlon, Westpac's executive for retail and business banking. Green loans are much borrower friendly in that they don't include any monthly service fees, fees for establishment or prepayment and are interest free. These can be repaid over a period of four years maximum.