Tata Power Renewable Energy Limited (TPREL), a subsidiary of The Tata Power Company Limited, has entered into a Memorandum of Understanding (MoU) with Bank of Baroda to facilitate financing for residential rooftop solar power systems. This collaboration aims to accelerate the adoption of solar energy across India by providing accessible financing under the Pradhan Mantri Surya Ghar Muft Bijli Yojana (PMSGMBY), seeking to streamline the loan application and disbursal process for residential consumers.
The financing arrangement allows Indian households to secure loans of up to Rs 6,00,000 at an interest rate starting at 7 per cent per annum. Applicants can choose between fixed and floating interest rate options, making the scheme flexible and accessible. For installations of up to 3 kW, loans of up to Rs 2,00,000 are available without the need for income documentation. Customers are required to contribute only a 10 per cent margin, and the loans, which are collateral-free, offer a repayment tenure of up to 10 years.
For larger rooftop solar installations between 3 kW and 10 kW, loans of up to Rs 6,00,000 can be availed under the regular scheme. These loans require a 20 per cent margin contribution. Bank of Baroda’s home loan customers are eligible for concessional interest rates ranging from 9.15 per cent to 11 per cent per annum, while non-home loan customers will have interest rates between 10.15 per cent and 12 per cent per annum. Similar to the smaller systems, these loans are collateral-free and offer a maximum repayment period of 10 years.
