A personal loan for solar
A personal loan is the quickest way to borrow for solar and needs nothing pledged against it. That convenience usually costs more than secured borrowing, so it suits a smaller system or a short gap more than the whole of a large one.
Updated 27 September 2026
How it works
A personal loan is unsecured: the lender decides on your income, your existing borrowing and your credit record, and nothing is pledged against it. You can spend it on anything, a solar system included. Banks and NBFCs both offer them.
Where it helps
- Speed. Personal loans are often decided and paid out quickly.
- Nothing pledged. Your house is not security for it.
- A smaller amount, or the gap between your savings and the price of the system.
Where it costs you
Because the lender has no security, personal loans usually carry a higher rate than secured borrowing, and often a shorter term, which means larger repayments. On a whole large system, that difference adds up.
Compare it before you commit
- For a home system up to 3 kW claiming the subsidy, look first at the PM Surya Ghar loan. The government has published it at 6.75%, collateral-free, for loans up to ₹2 lakh.
- If you have a home loan, a top-up is usually cheaper for a larger system.
- Check the rate, the processing fee, the term, and whether early repayment carries a charge.
A sensible way to use one
Some buyers take a personal loan for the part that is hard to fund any other way, such as batteries on a hybrid system, and pay for the rest from savings or a cheaper loan. Knowing the full price first helps: the solar calculator gives it from your bill.
The subsidy
A personal loan does not change the PM Surya Ghar subsidy. It is paid into your own bank account after the DISCOM inspection, separately, and you repay the loan on the lender’s schedule. For every route, see five ways to finance solar.
Questions we are asked
Can I use a personal loan to buy solar panels?
Yes. A personal loan can be spent on anything, including a solar system. The lender looks at your income and credit record, and nothing is pledged as security.
Is a personal loan a good way to pay for solar?
It is quick and simple, but usually dearer than secured options. For a home system claiming the subsidy, compare it first with the PM Surya Ghar bank loan, which the government has published at a much lower rate for loans up to ₹2 lakh.
Will a personal loan affect my subsidy?
No. The subsidy depends on the system, not on how it is paid for. It is paid into your own bank account after the DISCOM inspection.