PSU banks sanctioned loans worth INR 109 bln for solar rooftop plan till Sept
This story was originally published at 17:06 IST on 7 October 2025
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NEW DELHI – Public sector banks have collectively sanctioned loans worth INR 109.07 billion for the government's flagship solar rooftop plan, the PM Surya Ghar Muft Bijli Yojana, till September, the finance ministry said in a release Tuesday. "The implementation of the PM Surya Ghar Muft Bijli Yojana is actively supported by streamlining the credit delivery process, facilitating collateral-free affordable loans at lower interest rates and simplified financing through PSBs," the ministry said.
Launched in February 2024, with an investment of over INR 750 billion, the scheme aims to light up 10 million households by providing up to 300 units of free electricity every month. Under the scheme, households are provided with a subsidy to install solar panels on their roofs in order to increase the share of solar rooftop capacity and empower residential households to generate their own electricity.
The model loan scheme offers key benefits, including loans up to INR 200,000 at competitive interest, without collateral, a longer tenor for repayment in line with the electricity cost saving, a six-month moratorium period from disbursement, lower margin contribution by the applicant, and a digital sanction process based on self-declaration, the ministry said. "With active participation from Public Sector Banks, several enhancements have been introduced to ease access to loans and expand the scheme's reach," it said.
Under the scheme, each household is likely to save up to INR 15,000-INR 18,000 annually from free solar electricity and selling the surplus to distribution companies, Finance Minister Sitharaman had said while presenting the Interim Budget for 2024-25 (Apr-Mar). End
Reported by Priyasmita Dutta
Edited by Tanima Banerjee
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