Top Banks & NBFCs Offering Solar Project Loans in India

Do you too want to switch from traditional electricity and go solar? You’re not alone. India is seeing a solar boom, with more homeowners and businesses switching to clean energy every year. In fact, the country aims to reach 500 GW of renewable energy capacity by 2030, and solar is leading the charge. But let’s be honest, installing solar panels isn’t cheap. That’s where a solar project loan comes in, making it easier and more affordable to harness the sun’s power.

Let’s break down the top banks and NBFCs offering solar loans in India, what you need to know about financing solar projects, and how you can get started.

Why Consider a Solar Project Loan?

First, the numbers. A typical residential solar setup can cost anywhere from ₹50,000 to ₹6 lakhs, depending on the size and quality. For businesses and factories, the investment can run into crores. But here’s the good news: solar loans are designed to make this investment manageable, with flexible repayment and attractive solar loan interest rates in India.

Top Banks Offering Solar Project Loans

Several leading banks in India have stepped up to offer dedicated solar panel loan products. Here’s a quick look at some of the most trusted names:

1. State Bank of India (SBI) – Surya Ghar Loan

• Loan Amount: Up to ₹6 lakhs for individuals.
• Interest Rate: 6.50% p.a. for loans up to ₹2 lakhs, 8.65% p.a. for loans above ₹2 lakhs up to ₹6 lakhs.
• Processing Fee: Nil.
• Repayment: Up to 10 years.
• Special Feature: No PAN/ITR required for loans up to ₹2 lakhs.

2. Punjab National Bank (PNB) – Rooftop Solar Loan

• Interest Rate: 6.75%–12% p.a. (variable according to CIBIL and floating/fixed options).
• Loan Amount: Up to ₹6 lakhs.
• Repayment: Maximum 10 years.
• Eligibility: Simple KYC, income proof for higher amounts.

3. Union Bank of India – Union Solar Loan

• Loan Amount: ₹10 lakhs to ₹16 crores for businesses.
• Repayment Tenure: Maximum 10 years.
• Purpose: For MSMEs and businesses installing solar panels to meet energy needs.
• Benefits: Supports large-scale solar projects, helping businesses save on electricity bills.

4. Canara Bank – Rooftop Solar Loan

• Loan Amount: Up to ₹2 lakhs for residential solar projects.
• Repayment Tenure: Maximum 10 years.
• Margin: Minimum 10% of project cost.
• Processing Charges: Waived.

5. Indian Bank – PM Surya Ghar Scheme

• Loan Amount: Up to ₹6 lakhs
• Interest Rate: 6.75% p.a. Up to ₹2 lakhs
• Loan Tenure: Up to 10 years, including moratorium.
• Processing Fee: Nil.
• Special Feature: Linked to the government’s Muft Bijli Yojana with subsidy benefits.

Top NBFCs Offering Solar Loans

Non-Banking Financial Companies (NBFCs) are also making solar loans more accessible, especially for small businesses and underserved communities.

1. Namdev Finvest

• Focuses on accessible and tailored financing for solar energy projects, especially for small businesses and rural areas.
• Supports financial inclusion and sustainable development.

2. Vivriti Capital

• Offers innovative debt financing for renewable energy, especially solar projects.
• Caters to SMEs and emerging businesses, helping them adopt solar power.

3. Electronica Finance Ltd.

• Specializes in financing industrial equipment, including solar power installations.
• Offers customized solar financing for small and mid-sized enterprises.

4. Satin Creditcare Network Ltd.

• Expanding into solar energy financing, targeting rural and semi-urban areas.
• Supports microfinance and financial inclusion for solar adoption.

5. Capri Loans

• Offers solar finance for households, businesses, and factories.
• Loan Amount: ₹50,000 to ₹25 lakhs.
• Approval: under 3 minutes, with disbursal in 4-6 hours.
• Coverage: Up to 80% of solar modules, inverters, batteries, cables, and installation costs.

What Makes Solar Loans Attractive?

• Flexible Repayment: Most banks and NBFCs offer up to 10 years to repay your solar project loan.
• Competitive Interest Rates: Solar loan interest rates in India are often lower than regular personal loans, starting around 6.50% p.a.
• Quick Approvals: Some NBFCs offer approval in minutes and disbursal in hours.
• No/Low Processing Fees: Many schemes waive processing charges for solar loans.
• Government Subsidies: The PM Surya Ghar Muft Bijli Yojana offers up to ₹78,000 in subsidy for residential solar installations.

How to Apply for a Solar Loan

Applying for a solar panel loan is easier than ever:

• Check Eligibility: Most lenders require basic KYC documents, property ownership proof, and a decent credit score.
• Get a Quotation: Get a quote from a solar vendor for your installation.
• Submit Documents: Fill out the application online or at the branch, attach your documents, and provide the vendor quotation.
• Loan Approval & Disbursal: Once approved, the loan amount is usually paid directly to the vendor or EPC contractor.

Want to make it even easier? At My Mudra, we help you compare offers, check eligibility, and apply for solar loans with just a few clicks.

Ready to Go Solar? We’re Here to Help

Switching to solar is a smart move for your wallet and the planet. At My Mudra, we help you find the best solar project loan, compare solar loan interest rates in India, and apply for solar loans without the hassle. Whether you’re a homeowner, business, or factory owner, we make financing solar projects simple, fast, and stress-free.

Also Read:
- Tips for Finding the Best Loan for Solar Panel Options
- How Green Finance Can Be a Sustainable Choice for Your Home