SBI loan for PM Surya Ghar Muft Bijli Yojana: The PM Surya Ghar Muft Bijli Yojana, launched by the government a few months back, aims to empower households to harness solar energy, reduce electricity bills, and even earn extra income by selling surplus power to DISCOMs.
As per an ET report, individuals with sufficient roof space and roof rights can apply for the PM Surya Ghar Muft Bijli Yojana to install solar panels with a maximum capacity of 3 KW under this scheme.
PM Surya Ghar Muft Bijli Yojana: Eligibility criteria
As per the Press Information Bureau (PIB) release dated March 1, 2024:
- Applicants must be Indian citizens.
- They should own a house with a suitable roof for solar panel installation.
- The household must have a valid electricity connection.
- The household should not have received any other subsidy for solar panels.
SBI loan for PM Surya Ghar Muft Bijli Yojana – FAQs answered
Required documents
For loans up to a solar rooftop capacity of 3 KW:Only electricity bill and KYC documents (address proof and identification proof) are required.
For loans exceeding 3 KW up to 10 KW:
- In addition to identification and address proof, income documents along with a bank statement are required.
- For salaried individuals, the last 2 years’ Form 16 is required.
- For self-employed applicants, Income Tax returns of the last 2 years are required.
Loan eligibility
- No income criteria are required for loans up to 3 KW capacity. However, for installations ranging from more than 3 KW to up to 10 KW capacity, the applicant’s net annual income should be Rs. 3 lakhs or more.
- For installations of Solar Roof Top up to 3 KW capacity, a loan amount of Rs. 2,00,000 is available.
- For installations of Solar Roof Top more than 3 KW and up to 10 KW capacity, the loan amount can be up to Rs. 6,00,000.
- For installation of solar rooftop up to 3 KW capacity, a minimum margin of 10% of the project cost is required.
- For installation of solar rooftop more than 3 KW and up to 10 KW capacity, a minimum margin of 20% of the project cost is required.
- The rate of interest is 7% per annum if the loan is for the installation of Solar rooftop up to 3 KW capacity.
- The rate of interest is 10.15% per annum if the loan is for more than 3 KW and up to 10 KW capacity.
- You can avail the loan under the SBI Surya Ghar Scheme up to the age of 65 years. However, the loan must be repaid before you reach the age of 70 years.
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Loan process
- There is no processing fee for the SBI Surya Ghar Scheme.
- PAN/IT Return/Form 60 is not mandatory for loans up to 3 KW capacity. However, for loans exceeding 3 KW and up to 10 KW capacity, it is mandatory.
- The minimum CIBIL score required is 680, and customers with defaults/write-offs are not eligible.
- There is no prescribed minimum repayment period, but the maximum repayment period is 10 years, including a moratorium period of 6 months.
- There is no prepayment penalty for closing the loan early.
- Loan disbursement is made directly to the account of the Vendor/Channel Partner/EPC Contractor.
Subsidy and insurance
- Subsidy can be claimed by the borrower at the Ministry of New and Renewable Energy (MNRE) site by quoting the loan account number.
- Insurance of solar rooftop panels and equipment is mandatory for installations exceeding 3 KW and up to 10 KW capacity.
