which bank will give loan for the same
The Indian Renewable Energy Development Agency (IREDA) under the ministry of GOI, is actively engaged in providing loans for renewable energy projects such as Solar energy, wind power etc. The rate of interest charged by IRDA w.e.f 22.6.12 is as follows:
o Solar PV & Energy EE/ EC: 12.25% to 13%
o Solar Thermal & Biomass Power: 12.5 to 13.25%
The additional interest @ 1 % over and above the applicable rate of interest shall be charged till the date of commissioning of the project for the entire grid connected projects.
NOTE: Above mentioned data have been taken from the IREDA’s Website
Apart from IREDA, Power finance corporation (PFC) is also financing the solar projects at an attractive rate of interest. The minimum eligibility size of the projects is 1 for the loan purpose. The approval of MNRE is must before applying for the loan. The applicable rate of interest is decided on a case to case basis. Extent of financing is limited to 70% of the project cost under its scheme of grid connected solar PV power generation project.
PSU and Private banks also finance renewable power projects, however the rate of interest would be higher than the RE specific financier.
The loan processing charges for RE project are lower and easier at financial institutions like IREDA and PFC therefore please contact a project specific financier.
You could go in for domestic financing from Indian banks, which offer interest rates in the range of 11-13%. However, NBFCs may lend at slightly higher rates.
The IREDA gives out loans at rates ranging from 10.2-11.4%. Domestic loans are usually given out for a period of 7-10 years, although it could go up to 15 years as well.
However, you will need to fulfil certain eligibility criteria before you get your loan sanctioned, so it is advisable to find out eligibility details from the bank you’re approaching for a loan.
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