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exchange4solar

CAPEX with bank loan


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Frequently Asked Question

    • Government of India is promoting rooftop solar power projects for generation of electricity and self-consumption. Government aims to achieve a capacity of 40,000 MW of such projects by 2022
    • In order to support businesses, residential buildings, etc. government has classified loans to such project under Priority sector lending.This will drive banks to start lending to such projects and enable buyers to borrow at lower interest rates
    • Maximum loan amount for rooftop solar projects for industrial, commercial and other non-residential buildings is Rs. 15 crore per project. Loan can be provided for upto 70% of the project investment.
    • Maximum amount of Rs. 10 lacs for rooftop solar projects for residential buildings (to individual borrowers). This amount can be clubbed with home loans and borrowed at same interest rate as of home loan
    • Bank finance is available for rooftop solar projects although not very easily
    • If you are an existing borrower from a bank, your bank might be able to finance your solar project easily. If you face difficulty in availing finance from your bank, you can apply for the same here
    • Since this is a relatively new development, banks have not started lending actively for solar projects. Most banks will take some time before loans for solar are readily available
    • If you are buying a new house and plan to install rooftop solar, check with your home loan provider for additional loan amount to finance rooftop solar project
    • For non-residential solar projects, loan is usually available at rate of interest between 11%-12% and occasionally 13%. This will depend on lender, loan amount, your corporate credit rating, collateral security available (if required).
    • Since solar projects have been classified under Priority sector lending, we expect the rates to go down in near future once banks start passing the benefits of priority sector lending to borrowers. Unfortunately this is not happening now.
    • For residential rooftop solar projects, loans should be available at same rate of interest as your home loan, i.e. around 9%
    • We charge a processing fee for arranging the loan. This fee is payable once atleast one lender confirms a possible sanction and communicates indicative sanction terms including rate of interest, collateral security if any, processing fee, etc.
    • Prospective borrower has to deposit the fee with us or the lender as per lender's process before receiving final sanction from the lender
    • Fee deposited with us shall be fully refunded in case the loan is not sanctioned by any lender on our platform
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    • Documents to have handy

      • Business continuity proof-3 years income tax return and income statement
      • Last 2 year audit report and audited financials
      • Loan statements with Sanction Letters
      • 12 months bank statement
      • Project report/Business plan
      • Qualification certificate if qualified as a doctor
      • Copy of Quotations/Proforma Invoice of the equipment's to be purchased

*Disclaimer: We shall try to arrange loan for your solar project on best effort basis and the same will be subject to lender's discretion