SBI’s Rooftop Solar Finance Scheme: A Bright Move Towards Sustainable Energy
In the era of growing concerns about climate change and the rising need for sustainable energy sources, State Bank of India (SBI) has introduced a remarkable initiative to promote the use of solar energy. The SBI Rooftop Solar Finance Scheme aims to provide financial assistance for the installation of solar rooftop or ground-mounted grid-connected solar panel systems for personal use. This initiative not only promotes green energy but also offers attractive loan features to its customers.
The scheme is targeted towards all existing salaried personal segment customers who maintain a salary account with the bank. It provides a term loan ranging from a minimum of Rs. 50,000 to a maximum of Rs. 10 lakhs. The borrower’s margin or contribution to the loan amount is set at a minimum of 20%.
The rate of interest offered under this scheme is highly competitive. It is set at 200 basis points above the 1-Year MCLR (Marginal Cost of Funds based Lending Rate), with an effective rate of 10.5% as of 15th March 2023. However, existing SBI home loan borrowers can avail a 20 basis points concession in the rate of interest, subject to the extension of the mortgage. Similarly, other existing SBI customers with a good track record will receive a 10 basis points concession in the rate of interest.
The repayment period for the loan is flexible, ranging from a minimum of 6 months to a maximum of 5 years. The scheme also includes processing charges amounting to 0.50% of the loan amount plus applicable GST, subject to a minimum of Rs.500. To ensure efficiency and a quick Turn Around Time (TAT), the loan processing is centralized.
The Rooftop Solar Finance Scheme is available to all existing salaried personal segment customers maintaining a salary account with the bank. Applicants must have a CIBIL score of 670 and above and a minimum Net Annual Income (NAI) of Rs.3 lakhs and above.
The EMI/NMI ratio is set at 40% for those with an NAI less than or equal to Rs. 3 lakhs and up to Rs. 5 lakhs. For those with an NAI above Rs.5 lakhs, the EMI/NMI ratio is 50%.
The assets created out of the bank finance will serve as primary security through hypothecation. If a housing loan borrower opts for an extension of the mortgage, the housing property will serve as collateral security.
The documents required for availing of this loan include a Proforma Invoice/Quotation for the equipment and installation, feasibility approval from Jurisdictional ESCOM (wherever applicable), electricity bills for the last 6 months, KYC documents as per the bank’s guidelines, the last 2 years ITR returns / Form 16, and the salary statement for the last 6 months.
SBI’s Rooftop Solar Finance Scheme is a commendable step towards promoting the use of solar energy. It not only serves the cause of environmental sustainability but also provides an easy and affordable financing option for customers looking to install solar panels for personal use.
SBI Rooftop Solar Finance Scheme.
|All existing salaried personal segment customers maintaining salary account with Bank
|Minimum Rs. 50,000; Maximum Rs. 10 lakhs
|Borrower’s Margin / Contribution
|200 bps above 1-Year MCLR (Effective rate as of 15.03.2023 is 10.5%)
|Interest Rate Concession
|20 bps for existing home loan borrowers (with mortgage extension), 10 bps for other existing SBI customers with good track record
|Minimum 6 months; Maximum 5 years
|0.50% of loan amount + applicable GST, (Minimum of Rs.500)
|CIBIL score of 670 and above; NAI of Rs.3 lakhs and above
|40% for NAI <= Rs. 3 lakhs & upto Rs. 5 lakhs; 50% for NAI > Rs.5 lakhs
|Hypothecation of assets created out of Bank finance; Housing property as collateral security (for housing loan borrowers opting for mortgage extension)
|Proforma Invoice / Quotation for equipment, installation; Feasibility approval from Jurisdictional ESCOM; Electricity bill for last 6 months; KYC documents; Last 2 years ITR returns / Form 16; Salary statement for last 6 months