Solar Loans in India: How to Finance a Rooftop System

Plenty of people finance solar instead of paying for it out of savings. In India there are two practical ways to do that, and they work differently.

Route one: your own bank

Public-sector banks offer collateral-free solar loans at a concessional rate for home systems up to 3 kW installed under PM Surya Ghar. If you already bank somewhere you trust, this is the most direct route. Ask your branch for its current rate and terms, which each bank sets for itself.

Route two: through your installer’s partner financiers

We can also put customers in touch with partner financiers, so you don’t have to hunt for a lender from scratch. We don’t lend money ourselves. The financier makes its own credit decision on its own terms, and we can’t promise approval or a particular interest rate in advance. Our part is the introduction, and helping you compare what’s on offer.

The loan and the subsidy are separate

They are two different flows of money. You repay the loan in full on the lender’s schedule, however long the PM Surya Ghar subsidy takes to reach your bank account. Nothing sets the subsidy against the loan automatically, so work out your monthly repayment as if the subsidy were a separate payment that arrives later.

What to check before signing either

• The actual interest rate. “Concessional” is a description, so ask for the number.
• The tenure and EMI, and what happens if you want to prepay once the subsidy comes in.
• Whether the loan is secured against anything. The PM Surya Ghar bank scheme is collateral-free for eligible systems, so if that matters to you, check that a partner financier’s offer is on similar terms.
• Processing fees and any other charges on top of the headline interest rate.

Decide on solar first, then on the loan

Whether solar is worth it for you still comes down to your usage. A loan makes the upfront cost easier to manage, but it can’t make a system that won’t pay for itself through savings a good buy. Work out your own numbers in the calculator first, then talk to us about financing what it suggests.