The PM Surya Ghar solar loan
The scheme that pays the rooftop solar subsidy also has its own loan, through public-sector banks. The government's release of March 2025 described it as collateral-free, at a subsidised 6.75%, for loans up to ₹2 lakh.
Updated 27 September 2026
What the scheme offers
Under PM Surya Ghar: Muft Bijli Yojana, public-sector banks lend for rooftop solar on terms the government has set out. From the Press Information Bureau’s release of 11 March 2025:
| Lenders | 12 public-sector banks |
|---|---|
| Interest rate | Subsidised, 6.75% |
| Collateral | None, for loans up to ₹2 lakh |
| Application | Online, through the national portal |
The rate is tied to wider interest rates and has moved before. Treat 6.75% as the published figure at that date and ask your bank for the current one.
Who it suits
It is built for homes claiming the subsidy, and the subsidy covers home systems up to 3 kW. A ₹2 lakh collateral-free loan covers most of what a subsidised home system costs. Our 3 kW price page and the solar calculator show the price before and after the subsidy for your size.
How it fits with the subsidy
The loan and the subsidy are two separate flows of money:
- The bank lends, and the system is paid for.
- The system is installed and the DISCOM inspects it.
- The subsidy is paid into your own bank account, typically 30 to 45 days after the inspection.
- You repay the loan on the bank’s schedule throughout.
The subsidy is never paid to the bank or to the installer, and it does not reduce the loan automatically. Plan your repayments as if it were a separate sum that arrives later, then decide whether to use it to pay the loan down early. Ask the bank whether early repayment carries a charge. For the subsidy itself, see PM Surya Ghar in Punjab.
How to apply
Apply for the subsidy through the national portal, pmsuryaghar.gov.in, where you also choose a registered vendor. The loan application is online too; ask your bank how it links to your subsidy application. Make sure the panels quoted are DCR and on the ALMM list, which the subsidy requires; see DCR and non-DCR panels.
If it does not suit you
For a larger system, a business, or a home the scheme does not cover, the other routes are in five ways to finance solar: a home loan top-up, a personal loan, an NBFC, or our finance partner.
Sources
- Press Information Bureau release, 11 March 2025, checked 27 September 2026
- The national portal: pmsuryaghar.gov.in
Questions we are asked
What is the interest rate on the PM Surya Ghar solar loan?
The government's release of 11 March 2025 gave a subsidised rate of 6.75% for loans up to ₹2 lakh, through 12 public-sector banks. The rate is linked to wider interest rates and can change, so ask your bank for its current rate.
Do I need collateral for a PM Surya Ghar loan?
Not for eligible loans up to ₹2 lakh, which the scheme describes as collateral-free. For anything larger, ask the bank what it needs.
Is the subsidy paid to the bank?
No. The subsidy is paid into your own bank account after the DISCOM inspection. It is separate from the loan, which you repay in full on the bank's schedule.