Customised Average Rate Loan

Get a tailored solution just for your business and help manage your risk with this customisable portfolio loan.

Also known as CARL, this loan offers flexibility and convenience and in addition gives you access to the expert advice of our markets specialists.

You can choose a CARL when your total lending is more than $1 million.

What is a CARL?

A Customised Average Rate Loan (CARL) is many loans in one. You can divide the principal into portions and allocate different types of interest rates, helping you manage your risk and making borrowing easy.

Why choose a CARL?

Work with a specialist

Our specialists can meet you face-to-face or over the phone, updating you with the latest market information on interest rates.


Repayments and interest payment periods can be monthly, quarterly or half yearly to suit your cash flow.


You’ll find a CARL easy to manage, and with Internet Banking for Business you can view your portfolio and make repayments online whenever it suits you.

How a CARL works

With a CARL you have a ‘portfolio’ of loans, letting you create a risk management strategy that suits your business. It comes as a package and the interest you pay is calculated as the weighted average of the loan portions you have chosen.

The portfolio loan can be made up of the following interest rate structures:

  • Floating rate: the interest rate goes up or down as interest rates in the wider market change.
  • Fixed rate: a loan where the interest rate remains the same for an agreed period.
  • Capped rate: you have a maximum known cost of funding at a capped interest rate, for a fixed term. You benefit if interest rates fall below the capped rate. 
  • Range rateyou have a maximum known cost of funding at a capped interest rate and, if interest rates fall, allows limited participation to a minimum (floor) interest rate, for a fixed term. The borrowing rate is confined to an agreed interest rate range.


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Talk to a specialist

If you’re new to our CARL product, contact your BNZ Partner.

If you’re already managing your loans with a CARL, talk to one of our Business Markets specialists on 0800 930 002.