A scheme launched by the central government this year to provide free electricity. In February, Prime Minister Narendra Modi launched the scheme called ‘Pradhan Mantri Surya Ghar Muft Bijli Yojana’. One of the main objectives of this project is to reduce household electricity bills by increasing the use of solar energy. The Prime Minister said that about 1 crore people of the country will benefit from this project. They will get free electricity up to 300 units per month.
PM Surya Ghar Muft Bijlee Yojana: How does it work?
Under current benchmark pricing, this translates to a subsidy of Rs 30,000 for a 1 kW system, Rs 60,000 for a 2 kW system, and Rs 78,000 for a 3 kW system or above. The initiative offers a subsidy of 60% of the solar unit cost for systems up to 2 kW capacity and 40% of the extra system cost for systems between 2 and 3 kW capacity. No maximum amount of the subsidy is permitted.
“Households will be able to access collateral-free low-interest loan products of around 7% at present for installation of residential RTS systems up to 3 kW,” the Press Information Bureau (PIB) reports. The Reserve Bank of India periodically sets the interest rate, which is fixed at a 0.5% premium over the going repo rate. The current 7% effective interest rate for consumers will drop to 6% if the repo rate, which is currently 6.5%, is cut to, say, 5.5%.”
Can a consumer avail of loan facility to finance the solar unit?
☀️PM Surya Ghar Yojana
SBI PM Surya Ghar Muft Bijlee Yojana loan details
- Purpose: Installation of Solar Roof Top Upto 3 KW
- Margin: Minimum 10% of the Project Cost
- Security: Hypothecation of Assets
- Processing Fees: NIL
- Disbursement: Disbursement to be made directly to the Vendor / EPC Contractor after submission of all the required feasibility reports as mandated by MNRE. Disbursement of Loan Amount + Borrower’s Margin (Subsidy to be claimed by Borrower quoting the Loan Account Number)
- Maximum Loan amount: Rs 2 lakhs
- Maximum loan tenure: Maximum 120 months (inclusive of Moratorium period) No Minimum period (No pre-payment penalty)
- Net Interest rate to customer (% p.a.): EBLR – 2.15% Effective Rate as on date: 7%
Punjab & Sind Bank PM Surya Ghar Muft Bijlee Yojana loan details
- Bank has launched a dedicated product named “PSB Scheme for Financing Roof Top Solar (RTS) Projects backed by PM Surya Ghar: Bijli Mukth Yojana” for financing installation of residential grid-connected roof top solar projects
- Sub- scheme for financing roof top solar projects upto 3 KW
- Maximum Loan amount: Rs 2 Lakhs.
- Maximum Loan Tenure: 10 years
- Net Interest rate to customer (% p.a.): “Reducing 7% (Linked to EBLR)”.
Canara Bank PM Surya Ghar Muft Bijlee Yojana loan details
- Canara Rooftop Solar (CRTS)- PM Surya Ghar Yojana (PMSGY) (CRTS – PMSGY – upto 3kW)
- Purpose: For Installation of Rooftop Solar Yojana On-Grid System (Residential only) Upto 3KW
- Margin: Minimum 10% of Total Project cost shall be contributed by the Borrower
- Security: Hypothecation of the Equipment to be Purchased out of the Loan Component
- Security & All Other Charges: NIL
- Disbursement: Loan amount along with the applicable margin shall be directly disbursed to
- the vendor/EPC Constractor after execution of all required loan Documents.
- Maximum Loan amount: Maximum upto Rs.2.00 lakh (including subsidy).
- Maximum Loan Tenure: 10 Years.
- Net Interest rate to customer (% p.a.)
- Floating ROI Regime # 7.00% (RLLR – 2.25%)
- *Fixed ROI Regime # 7.75% RLLR + FRP (0.75) – 2.25%
- Present RLLR is 9.25% # Subject to ultimate lending rate not falling below RBI Repo rate or 7% whichever is higher.
Union Bank of India PM Surya Ghar Muft Bijlee Yojana loan details
- Loan is provided for Installation of Roof Top Solar plant up to 3kw
- Eligible:
- Existing Home Loan borrowers
- Individuals who have not availed home loans
- Individuals who have availed home loan with other banks (subject to submission of NOC from Bank)
- Applicant having CIC score 680 & above (NTB also eligible)
- Having sufficient area as mandated by MNRE from time to time.
- Latest electricity bill
- Moratorium Period Maximum period of 6 month
- Security: Hypothecation of roof top Solar/ Assets created out of Bank finance under this scheme
- Subsidy :
- 1. KW- Rs. 30000/-
- 2. KW- Rs. 60000/-
- 3. KW- Rs. 78000/-
- To be claimed by borrower (Loan account number to be provided for credit of subsidy amount in loan account)
- Processing Charges :Nil”
- Maximum Loan amount: 90% of project Cost (as per MNRE approved dealer) or 2.00 Lakh.
- Maximum Loan Tenure: 120 EMIs
- Net Interest rate to customer (% p.a.): EBLR-2.25 % presently 7% pa. Reducing.
Bank of Maharashtra PM Surya Ghar Muft Bijlee Yojana loan details
- Maha Bank Rooftop Solar Panel Loan scheme- PM Suryaghar Muft Bijli Yojna
- Maximum Loan amount
- Up to 3 KW – Rs 2.00 lakhs
- 4KW to 10KW – Rs 10.00 Lakhs
- Maximum Loan Tenure
- 10 Years
- Net Interest rate to customer (% p.a.)
- For Rooftop Solar Plant Capacity up 3 KW – 7% (floating).
- Rooftop Solar Plant Capacity above 3 KW- 9.50% to 10.30% (Floating based CIC score)
Bank of Baroda PM Surya Ghar Muft Bijlee Yojana loan details
- PM-Surya Ghar Yojana – Composite
- Maximum Loan amount: Max. Rs. 2.00 Lakh (for solar unit up to 3KW) and Rs. 10.00 Lakh (for Solar unit above 3 KW to 10 KW)
- Maximum Loan Tenure: 10 Years (including 6 months moratorium)
- Net Interest rate to customer (% p.a.)
- For Solar units up to 3 KW : 7% P.A.
- For Solar units above 3 KW to 10 KW : Starting from 9.15% p.a., Based on CIBIL Score. (Available in both Floating and Fixed rate).
Indian Bank PM Surya Ghar Muft Bijlee Yojana loan details
- Existing Product Name & details
- “Roof Top Solar Loan Scheme PM-Surya Ghar: Muft Bijli Yojana (Upto 3 KW)”
- Maximum Loan amount: 2 Lakh
- Maximum Loan Tenure: 10 years
- Net Interest rate to customer (% p.a.): ROI -Repo ( at present 6.50%)+Prime Spread (2.70%) – BSD (2.20%) presently 7%.
Bank of India PM Surya Ghar Muft Bijlee Yojana loan details
“BOI Star Roof Top Solar Panel Finance” under PM Surya Ghar: Muft Bijli Yojana Up to 3 KW
- Purpose: Loan for installation of Solar Roof Top/Ground Mounted grid connected solar panel systems and equipments for personal use
- CIBIL Personal Score should be 675 & Above, (-1/0/NoHit)
- Borrower/Co-Borrower should be owner of the House
- Margin: Minimum 5%, wherever Subsidy is Available/other Case Minimum 10%
- Processing Charges: NIL
- Disbursement: Disbursement to be made directly to the Vendor/EPC contractor after submission of all the required feasibility reports as mandated by MNRE. All Application will be sourced throught PM Surya Ghar: Muft Bijli Yojana & JanSamarth Portal
- Maximum Loan amount: 2 Lakhs
- Maximum Loan Tenure: Max 10 years excluding moratorium
- Net Interest rate to customer (% p.a.): RBLR- 2.25% Minimum 7.00% p.a.
