Financing Solar Water Heaters

Financing Solar Water Heaters

 

Type of Facility

Term Loan (TL)

Purpose

Purchase of brand new solar water heating system with necessary accessories for usage in Agro Processing units

Eligibility

  • Small & Marginal farmers
  • Share Croppers / Tenant Farmers
  • Agri-Entrepreneurs

Components

  • Solar PV Panel
  • One of the following motor pump sets compatible with the photovoltaic array:
  1. Surface mounted centrifugal pump set
  2. Submersible pump set
  3. Floating pump set
  4. Any other type of motor pump set after approval from MNRE

Amount

  80-85% of the project cost including the cost of accessories

Margin

Upto Rs. 1.60 lakh - Nil

Above Rs.1.60 lakh – 15 to 25 %

Rate of Interest

   Up to Rs.10.00 lakh     : 1 Year MCLR + BSS@0.50% + 1.75%

Above Rs.10.00 lakh             : 1 Year MCLR +BSS@0.50%+ 2.75%

Security

Upto Rs. 1.60 lakh - Hypothecation of Equipment & Accessories

Above Rs.1.60 lakh –  Hypothecation of Equipment & Accessories & Third Party Guaranty/ Mortgage of land

Repayment

   Minimum 3-5 years

Paper requirement

   Applicant: -

  • Loan application
  • All 7/12, 8 A, 6 D extracts, Boundaries of the applicant
  • No dues certificates of the applicant from surrounding financial institutions including PACS
  • Legal search from advocate on Bank’s panel for loans above Rs.1.60 lakh where land is to be mortgaged
  • Copy of Quotations / Estimates

 

   Guarantor (for loans above Rs.1.60 lakh): -
  • Guarantor form
  • All 7/12, 8 A & PACS dues certificate of the guarantors