UPDATE 1-EIB, banks to lend 1.4 bln pounds for UK wind farms

* Another 700 mln pounds could be available by late 2010

* Similar offshore wind loan scheme unlikely

(Recast; adds quotes, details throughout)

By Kwok W. Wan

LONDON, Nov 10 (Reuters) - The European Investment Bank and three commercial banks, including Lloyds Banking Group (LLOY.L), will provide 1.4 billion pounds in loans ($2.33 billion) to help finance onshore wind projects in Britain.

British finance minister Alistair Darling said on Tuesday that he hoped this example would encourage other governments to start similar schemes to promote low-carbon energy projects.

"As far as I'm concerned, this will never happen unless you've got complete government support at every possible level," Darling said at a seminar in London.

Energy Minister Ed Miliband said the loans were part of the government's plan to inject much-needed liquidity to secure development of clean energy, hit by the credit crunch, and grow Britain's low-carbon sector.

"I think this is a big change from the past few years... in that the green economy is part of the economy of the future and becoming incredibly important," Miliband told delegates.

The EIB would supply 700 million pounds, the remaining half would come from commercial banks, including Royal Bank of Scotland (RBS.L) and BNP Paribas SA (BNPP.PA), he said.

It should help onshore wind projects which would have total costs of between 20 million and 100 million pounds. Loans would run for 15 years.

The EIB said the money was for new onshore projects and would not be able to refinance existing projects, in addition to covering a maximum of 50 percent of any project costs.

WINDFALL

Interest in financing has been high, with a large chunk of the EIB funds already assigned to the partner banks.