Banks Offering Loans for Grid Connected Solar Rooftop Systems*
Sr. Parameter State Bank of India
No.
1 Target Group
2 Eligibility Criteria Sole Proprietorship, Partnership
Firm including LLP and
Company/SPV/NBFC
Borrower or their parent
company/sponsor should have:
1. At least one year
experience/past track
record in power sector.
2. Credit Rating Agency (CRA)
rating of SB-10 and better
and/or External Credit
Rating (ECR) of
investment grade.
[Note: ECR is mandatory for
exposure of INR 10 crore
and above].
Canara Bank - Housing cum Punjab National Bank Syndicate Bank - SyndSolar Indian Renewable Energy
Solar Loan Scheme Development Agency Limited
(IREDA)
Sole proprietorship firms, Existing/New housing loan
partnership firms including customers availing loan for
Limited Liability Partnership independent house
(LLP), Limited Companies, construction.
Private Limited Companies, House owners who intend to
Trusts, Associations, Special install solar rooftop system who
Purpose Vehicle (SPV), Non- have not availed Housing loan
Banking Finance Companies with any bank are also covered.
(NBFCs) and Registered
Societies.
1. Salaried individuals As per “General Eligibility
confirmed in the service Conditions” mentioned in
with a minimum service of Chapter 3 of IREDA
three years. “Financing Norms and
2. Individuals engaged in Schemes” document.
business/professionals and
self-employed persons.
Such applicants should have
been in the
business/profession for a
minimum period of three
years.
3. The age of the borrowers
should be less than 60 years
at the time of availing the
loan.
4. Persons 60 years and above
are eligible, subject to
certain stipulations.
5. Should have free rooftop to
install the solar equipment.
6. Net Take Home (NTH)
should be 25 percent.
Sr. Parameter State Bank of India Canara Bank - Housing cum
No. Solar Loan
3 Loan Amount Upto 75 percent of project cost Housing Loan Component:
1. General Housing Finance
Scheme: Four times of
Gross Annual Income
2. Housing Loan Scheme for
NRIs: Four times of Gross
Annual Income
3. Housing Loan to
Agriculturists: Four times of
average annual income
4. YUVA AWAS RIN Scheme:
Six years gross salary
Punjab National Bank Syndicate Bank - SyndSolar
Scheme
25 percent of project cost.
Capital subsidy, if any, provided
by Ministry of New and
Renewable Energy (MNRE) may
be taken as a part of margin.
Loan amount: 75 percent of the
project cost with maximum of
INR 3,75,000.
Indian Renewable Energy
Development Agency Limited
(IREDA)
Shall be 70 percent of the
project cost with minimum
promoter’s contribution of 30
percent. However, IREDA may
extend loan upto 75 percent
depending on creditworthiness.

Solar Loan Component:

1. 20 percent of eligible
quantum under Housing
Loan Component or
2. 80 percent of the cost of
the solar system or
3. INR 10.00 Lakh, whichever
is less.
4 Type of Facility 1. Term Loan 1. Term Loan: Need Based
2. Need based Working Capital 2. Working Capital under
against receivables Receivables: Need Based
3. Need based Non Fund Based 3. NFB (LC/Letter of
(NFB) (Letter of Credit Guarantee): Need Based
[LC]/Bank Guarantee [BG])
facility
Sr. Parameter State Bank of India
No.
5 Pricing (Rate of One year Marginal Cost of Funds
Interest) Based Lending Rate (MCLR) plus
spread in the range of 20 bps to
50 bps based on risk rating of
the customer.
Canara Bank - Housing cum
Solar Loan
For Women:
For Amount upto 30 lakh - One
year MCLR + 0.05 percent
For Amount of 30 - 75 lakh -
One year MCLR + 0.15 percent
For Amount above 75 lakhs -
One year MCLR + 0.20 percent
Punjab National Bank
Minimum of one year MCLR
upto a maximum spread of 30
to 50 bps based on risk rating of
the borrowing firm/company.
Syndicate Bank - SyndSolar Indian Renewable Energy
Scheme Development Agency Limited
(IREDA)
At MCLR 1. Projects are graded into
four grades based on risk
assessment
2. Present applicable rates
are 9.80 to 10.75 percent

For Other Borrowers:

For Amount upto 30 lakh - One
year MCLR + 0.10 percent
For Amount of 30 - 75 lakh -
One year MCLR + 0.20 percent
For Amount above 75 lakhs -
One year MCLR + 0.25 percent

One year MCLR of the Bank (to

be reset every year) - 8.3
percent w.e.f.
September 07, 2017
6 Fixed Asset Coverage Above 1.25 Minimum 1.25
Ratio (FACR) in a
Year
7 DSCR Average Gross DSCR at P75: 1.35
Average Gross DSCR at P90: 1.15
8 Interest Coverage Minimum two
Ratio (at Borrower
and Individual
project level)
9 Net Long Term Debt 04:01
/Earnings Before
Interest Taxes
Depreciation and
Amortization
(EBITDA) - Maximum
(at borrower and
also at
Sr. Parameter State Bank of India Canara Bank - Housing cum Punjab National Bank Syndicate Bank - SyndSolar Indian Renewable Energy
No. Solar Loan Scheme Development Agency Limited
(IREDA)
Individual sub-
project level)
10 Loan Repayment Door-to-Door tenor upto 15 Maximum 20 years in Equated Door-to-Door tenor of Upto 10 years with moratorium
Period years. Monthly Instalments (EMIs) OR maximum 15 years, which period of 12 months from the
(Maximum) the repayment period comprises of Commercial Operation Date
stipulated under housing loan, construction/installation, (COD). Maximum construction
whichever is earlier. moratorium and repayment period shall be 12 months from
period. the first disbursement.
11 Moratorium Upto 12 months post the Date of One year after the first
Commencement of Commercial disbursement or four months
Operations (DCCO). from COD, whichever is earlier.
12 Primary Security 1. Exclusive first charge on all Mortgage of House. Exclusive first charge on fixed
fixed assets, movable Hypothecation of assets created assets (present as well as
assets, and current assets, out of loan, i.e., Solar future) relating to the project/
lease hold rights, cash Equipment. program.
flows and project related
accounts and rights
therein, current as well as
future relating to the
project (Terms and
Conditions [T&C] applicable).
2. Assignment of Project
documents.
13 Collateral Security The bank may seek additional Loan for Solar Rooftop Project Company shall provide
security (collateral) if FACR falls to Micro Small and Medium collateral security of immovable
below 1.25. Enterprises (MSME) up to INR non-agricultural properties in
10 lakh shall be without urban and rural areas
collateral security as per (Minimum 10-20 percent of
Government guidelines. loan amount) and/or BG/fixed
For others: Notwithstanding the Deposit (FD) depending on
security stipulated, the viability of the project and
sanctioning authority may credit worthiness.
where it is deemed necessary,
on a case to case basis may
stipulate such collateral security
as required.
Sr. Parameter State Bank of India
No.
14 Guarantee 1. In case of Sole
Proprietorship/Partnership
Firm/Company, personal
guarantee of proprietor/
partners/directors.
2. In case of SPVs/
Associates/Subsidiaries,
corporate guarantee of
sponsor can be further
explored.
15 Debt Service Reserve Equivalent to six months
Account (DSRA) principal and interest.
16 Statutory Clearances The required project
and Power Purchase agreements (including PPA)
Agreement (PPA) /clearances/approvals (as
applicable) should be in place,
before disbursement of the first
tranche for each individual
loan under the overall
sanctioned credit facility.
17 Others Mandatory compliance of World
Bank guidelines on
procurement and environment,
health, safety and social
(EHSS) related to solar rooftop
projects.
18 Financing Mode Program and project modes
19 Purpose
20 Size/Capacity of Solar
Rooftop System
Canara Bank - Housing cum Punjab National Bank Syndicate Bank - SyndSolar Indian Renewable Energy
Solar Loan Scheme Development Agency Limited
(IREDA)
Personal guarantee of Waived
proprietor/partner/director to
be obtained. In case of SPV,
corporate guarantee of
promoter company shall be
explored.
DSRA equivalent to minimum
three months principal and
interest to be maintained after
the date of commercial
operations.
The required project
agreements (including PPA)/
clearances/approvals should be
in place, before disbursement
of the first tranche for each
individual loans under the
overall sanctioned credit
facility.
Compliance with Asian Registration fee payable along
Development Bank (ADB) with application:
guidelines on procurement and 1. Upto 10 crores – INR 25,000
EHSS, gender, and child labour. 2. 10 crore to 70 crore – INR
50,000
3. Above 70 crore – INR
1,00,000
Applications can be submitted
in aggregator or direct category.
To install solar rooftop systems
on houses.
1 kWp (8 sq. m area required
for 1 kWp solar rooftop system)
 Sr. Parameter State Bank of India Canara Bank - Housing cum Punjab National Bank Syndicate Bank - SyndSolar Indian Renewable Energy
No. Solar Loan Scheme Development Agency Limited
(IREDA)
21 Project Cost Approximate project cost of 1
kWp solar rooftop system is 1
lakh. However, actual estimate
will be made by the agency
installing the system. Higher
loan amount may be considered
depending upon the capacity of
solar rooftop system, rooftop
space available, cut back, etc.

22 Processing/ Nominal processing fee of 0.50 Nil

Documentation percent (Minimum INR 1,500
Charges and Maximum INR 10,000).
23 Link of Website https://www.sbi.co.in/ http://www.canarabank.com/e https://www.pnbindia.in/ https://www.syndicatebank.in/ http://www.ireda.gov.in/
nglish/ english/home.aspx

*Please Note: This document has been prepared by compiling data available as an open source. Please check the schemes of individual banks for updated information.