PM Surya Ghar Muft Bijli Yojana: Solar rooftop installation loans of SBI vs Canara Bank vs Union Bank of India vs Bank of Baroda vs Bank of India

PM Surya Ghar Muft Bijli Yojana is a scheme that aims to provide free electricity to households who opt to install rooftop solar electricity units. The households will be able to get 300 units of electricity free every month.

How does PM Surya Ghar Muft Bijlee Yojana work?
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. The subsidy is limited to a maximum capacity of 3 kW. At current benchmark pricing, this translates to a Rs 30,000 subsidy for a 1 kW system, Rs 60,000 for a 2 kW system, and Rs 78,000 for a 3 kW system or above.


Also read: Who is eligible to apply for free electricity under PM Surya Ghar Muft Bijli Yojana?

Can a consumer avail of loan facility to finance the solar unit?
According to the Press Information Bureau (PIB), "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 interest rate has been pegged at 0.5% above the prevailing Repo Rate decided by the Reserve Bank of India from time to time. In the event of Repo Rate, which is 6.5% at present, getting reduced to say 5.5%, the effective interest rate for consumer will become 6% instead of the current 7%."

Also read: PM Surya Ghar Muft Bijli Yojana: How to avail subsidy under new solar rooftop scheme

Here is a look at banks that offer loans to those who opt instal solar rooftop panels under the PM Surya Ghar Muft Bijli Yojana, as per the scheme's National Portal. (All data as on March 15, 2024 according to information available on the PM Surya Ghar Muft Bijli Yojana Nation Portal)

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.

Also read: PM Surya Ghar Muft Bijli Yojana: Step-by-step guide on how to get subsidy in your bank account within 30 days

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:

1. Existing Home Loan borrowers
2. Individuals who have not availed home loans
3. Individuals who have availed home loan with other banks (subject to submission of NOC from Bank)
4. Applicant having CIC score 680 & above (NTB also eligible)
5. Having sufficient area as mandated by MNRE from time to time.
6. 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.