Tata Power Renewable Energy Limited (TPREL) has signed a memorandum of understanding (MoU) with Bank of Baroda to provide financing options for residential rooftop solar power systems under the Pradhan Mantri Surya Ghar Yojana (PMSGY).
Under the MoU, applicants can avail loans of up to Rs 600,000 at interest rates starting from 7 per cent per annum, with both fixed and floating interest rate options. Customers installing rooftop solar systems of up to 3 kW can avail loans of up to Rs 200,000 with minimal documentation and a 10 per cent margin contribution, while installations between 3 kW and 10 kW can access loans of up to Rs 600,000 with a 20 percent margin requirement. The loans are collateral-free with a flexible repayment tenure of up to 10 years. Bank of Baroda’s home loan customers will benefit from concessional interest rates ranging from 9.15 per cent to 11 per cent per annum, while non-home loan customers will have access to interest rates between 10.15 per cent and 12 per cent per annum.