Financing Solar Energy Based Pumpset Loans

Financing Solar Energy Based Pumpset Loans

Type of Facility

Term Loan (TL)

Purpose

Installation of Solar water Pumping System

Eligibility

• Farmer should have adequate source of water
• For wells, it should have sufficient recouping capacity to irrigate the area
• Farmer should have own economic land holding with minimum of 10 acres.

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

  75% of the cost of the equipment

Margin

Upto Rs. 2.00 lakh - Nil

Above Rs.2.00 lakh - Margin shall be minimum of 25%. If subsidy is available, same can be considered as margin

Rate of Interest

Up to Rs.10.00 lakh     : 1 Year MCLR + BSS@0.50% + 2.00%

Above Rs.10.00 lakh    : 1 Year MCLR +BSS@0.50%+ 3.00%

Security

• Upto Rs. 2.00 lakh - Hypothecation of Equipment

• Above Rs.2.00 lakh- Hypothecation of Equipment & Third Party Guarantee/ Mortgage of Land

Repayment

   Minimum 5-7 years

Paper requirement

• 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