PM Surya Ghar – Muft Bijli Yojana Loan: Complete Guide to Financing & Subsidy

REAR
4 days ago
2 min read

The PM Surya Ghar – Muft Bijli Yojana (PMSGY) is a flagship initiative by the Government of India that makes rooftop solar energy affordable for households. Through a mix of subsidy support and bank loans, families can now reduce their electricity bills, save money, and move towards clean energy without heavy upfront investment.

Loan Facility Under PM Surya Ghar Yojana

The scheme provides easy financing for rooftop solar systems:

Loan up to ₹2 lakh for systems up to 3 KW.
Loan up to ₹6 lakh for systems between 3 KW and 10 KW.
The cost is assumed at ₹70,000 per KW.

Interest Rate Structure

The interest rate depends on the loan amount:

For Loans up to ₹2 lakh – Repo Rate + 0.50% (approx. 7% effective rate).
For Loans above ₹2 lakh:
- Home Loan Customers: Same rate as their existing Home Loan ROI.
- Non-Home Loan Customers: Home Loan ROI + 100 bps (1%).

This makes the scheme especially attractive for home loan borrowers, as they can enjoy solar financing at the same rate as their housing loan.

Eligibility for Solar Loan

Individual applicant with rooftop ownership rights.
CIBIL score 680+ (NTC applicants also eligible).
PAN optional for loans up to 3 KW, mandatory above 3 KW.
For loans above 3 KW, minimum annual income of ₹3 lakh is required.
Valid electricity bill and a savings account.

Loan Terms & Benefits

Tenure: Up to 10 years (120 months), including a 6-month moratorium.
Margin Requirement: 10% (up to 3 KW), 20% (above 3 KW).
Security: Hypothecation of solar assets only.
Processing Fees: Nil.
No prepayment penalty – borrowers can close early without charges.

Subsidy Benefits

Government subsidy reduces the project cost significantly:

1 KW system: ₹30,000
2 KW system: ₹60,000
3 KW & above: ₹78,000

The subsidy is credited directly into the borrower’s loan account, lowering repayment liability.

Additional Highlights

Loan applications are processed only through the Jan Samarth Portal.
Loan disbursement is made directly to the vendor/EPC contractor.
Insurance not required for systems up to 3 KW, but compulsory above 3 KW.
Applicants 65 years and above can apply with a co-borrower (spouse/children).

Why This Scheme Matters

The PM Surya Ghar loan + subsidy model ensures that even middle-class households can afford rooftop solar. With low-interest rates, zero processing fees, and direct subsidy credit, the scheme is a strong push towards India’s energy independence and green future.

For PM Surya Ghar Loan One Pager Click on the link or visit https://pmsuryaghar.gov.in/#/consumer-financing-options