Switching to solar has never been more affordable, thanks to the PM Surya Ghar: Muft Bijli Yojana. While the ₹78,000 subsidy covers a significant portion of the cost, usually 40-50%, the remaining amount can be financed through special collateral-free solar loans. We've compiled the latest interest rates from top banks to help you choose the best financing partner.
Top Banks Offering PM Surya Ghar Solar Loans in 2026
Most public-sector banks have aligned their rooftop solar loan products with the PM Surya Ghar scheme guidelines: collateral-free up to ₹2 lakh, concessional rates linked to RLLR/EBLR, and 10-year tenures. Here is a detailed comparison sourced from published bank circulars and the central Jan Samarth scheme portal. Rates change with RBI repo movements; always confirm at the branch before signing.
| Bank Name | Interest Rate (≤ 3kW) | Interest Rate (> 3kW) | Processing Fee | Max Tenure |
|---|---|---|---|---|
| State Bank of India (SBI) | 7.00% | 8.15% - 10.15% | Nil | 10 Years |
| Canara Bank | 6.50% | 9.50% | Nil | 10 Years |
| Union Bank of India | From 7.00% | EBLR + 2.10% | Nil | 10 Years |
| Bank of India | 7.00% - 7.50% | 8.85% | Nil | 10 Years |
| Bank of Baroda | From 7.15% | RLLR + 1.10% | Nil | 10 Years |
| Punjab National Bank (PNB) | From 7.00% | RLLR + 1.50% | Nil up to ₹2L | 10 Years |
| Indian Bank | From 7.20% | RLLR + 1.75% | Nil | 10 Years |
| Central Bank of India | From 7.25% | RLLR + 1.85% | 0.25% (max ₹500) | 10 Years |
| SBI Solar Energy Loans (NBFC route) | From 8.50% | 9.00% - 11.00% | 0.50% - 1.00% | 10 Years |
Rates indicative as of April 2026, sourced from bank circulars and the Jan Samarth scheme portal. All public-sector entries are PM Surya Ghar empaneled. NBFC option (SBI Solar Energy Loans) is provided for completeness; rates are typically higher but processing is faster for borderline credit profiles.
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Get Help With Your Loan ApplicationSources: PM Surya Ghar Official Portal, SBI Official, Canara Bank
How to Apply for a PM Surya Ghar Solar Loan: 6 Steps
The fastest route from quote to disbursal goes through the central Jan Samarth portal. Here is the full sequence so nothing surprises you at the bank counter.
- Register on pmsuryaghar.gov.in using your mobile number and the consumer number from your latest electricity bill. The portal verifies that your DISCOM is empaneled (all four MP DISCOMs are).
- Select an MPERC-registered vendor. The portal lists vendors registered with your DISCOM and the Madhya Pradesh Electricity Regulatory Commission. Only quotes from these vendors qualify for the central subsidy. r-solar is registered across all four MP DISCOMs.
- Get a written quotation. Your vendor issues a turnkey quotation specifying ALMM-listed module make/model, inverter brand, structure, BoS, taxes, and the after-subsidy net cost. This is your loan-application annexure.
- Apply at the bank. Walk in to a participating branch (SBI, Canara, Union, BoB, PNB, Indian Bank, etc.) with the quotation, your last 3 months' electricity bills, ID/address proof, and (for > ₹2L loans) income proof. Or apply through the Jan Samarth single-window portal — many banks now accept that flow end-to-end.
- Installation. After the bank's in-principle sanction, your vendor commissions the system. DISCOM technical scrutiny and net-meter installation happen in parallel (timeline 4 to 8 weeks total). Disbursal is typically released to the vendor in two tranches.
- Subsidy credit. 30 to 45 days after DISCOM commissioning, the central subsidy (up to ₹78,000 for a 3 kW system) lands directly in your bank account. Most participating banks let you part-pay your loan principal with that credit at zero penalty.
Total timeline from registration to first reduced electricity bill: typically 8 to 12 weeks. r-solar handles steps 2 to 6 end-to-end for our customers.
Worked Example: A Barwani Family Borrowing ₹1.5 L for a 3 kW System
To make the numbers concrete, here is what the loan economics look like for the most common residential case in MP: a 3 kW rooftop, ₹78,000 subsidy, financed at Canara Bank's 6.50% headline rate.
| System size | 3 kW |
| Turnkey installed cost | ₹1,65,000 |
| Loan amount (90% of cost) | ₹1,50,000 |
| Bank & interest rate | Canara, 6.50% p.a. (RLLR-linked) |
| Tenure | 10 years (120 months) |
| EMI before subsidy | ~₹1,704 / month |
| PM Surya Ghar subsidy (credited month 2) | – ₹78,000 |
| Effective principal after subsidy pre-payment | ₹72,000 |
| Restructured EMI (post-subsidy, same tenure) | ~₹817 / month |
| Estimated monthly bill saving (vs current ₹2,500 bill) | ~₹1,800 / month |
| Net monthly cash benefit | ~₹980 / month from year 1 |
Numbers assume Canara Bank's 6.50% headline rate (April 2026), no pre-payment penalty (per PM Surya Ghar scheme guidelines), and the family using the subsidy credit to part-pay principal in month 2. Results vary with your CIBIL score, district, and current tariff slab. Talk to an r-solar advisor for a quote tied to your bill.
Detailed Analysis of Best Offers
1. State Bank of India (SBI)
As India's largest lender, SBI offers the most accessible solar loan product. For systems up to 3kW (which is the most common for homes), the rate is flattened at roughly 7% for eligible applicants.
- Loan Limit: Up to ₹2 Lakh for < 3kW; Up to ₹6 Lakh for> 3kW.
- Eligibility: CIBIL score of 680+.
2. Canara Bank
Canara Bank is currently aggressive with its "Canara Rooftop Solar (CRTS)" scheme, offering rates as low as **6.50%** for smaller systems. This is arguably the cheapest option on the market currently.
3. Union Bank of India
Union Bank ties its rates to the External Benchmark Lending Rate (EBLR). While slightly more variable, they offer quick processing for existing home loan customers with a concession of 5 basis points for women borrowers.
Key Loan Features You Should Know
- Zero Collateral: For loans up to specific limits (usually around ₹2-3 Lakhs under this scheme), you do not need to pledge your property or gold. The solar equipment itself acts as hypothecation.
- 10-Year Tenure: The long repayment period ensures your EMI is very small, often less than what you save on electricity bills!
- 6-Month Moratorium: Most banks offer a grace period of 6 months after disbursement before your EMI starts, giving time for the system to be installed and the subsidy to be credited.
- No Pre-payment Penalty: You can pay off the loan early without extra charges if you receive a lump sum (like your subsidy amount!).
Smart Tip: Use Your Subsidy to Pre-pay
Since the subsidy (₹78,000 for a 3kW system) comes directly to your bank account 30-45 days after installation, financial experts recommend using this amount to immediately make a part-payment towards your loan principal. This drastically reduces your outstanding balance and interest burden.
Running a factory, not a home?
PM Surya Ghar's residential loan scheme isn't built for factory-scale solar. For industrial and commercial rooftops in MP, we offer a zero-capex OPEX/PPA model for factories — r-solar builds and operates the plant, you pay a fixed ₹4.50/kWh with zero upfront investment.
PM Surya Ghar Solar Loan: Frequently Asked Questions
Which bank has the lowest solar loan interest rate in India?
In 2026, Canara Bank and Union Bank of India offer the most competitive rates for PM Surya Ghar rooftop solar loans, starting around 6.50% to 7.15% p.a. (linked to RLLR/EBLR). SBI is the most widely available with rates starting around 7.15% p.a. The exact rate depends on your CIBIL score, loan tenure, and whether you bundle the loan with the central subsidy. Always compare the effective rate after subsidy credit, not just the headline rate.
Can I get a solar loan without collateral?
Yes. Under the PM Surya Ghar Muft Bijli Yojana, residential rooftop solar loans up to ₹2 lakh are unsecured (no collateral required) at participating public-sector banks. The solar system itself, plus the central subsidy assignment, serves as the security. For loans above ₹2 lakh or for commercial/industrial systems, banks may ask for collateral or hypothecation of the solar asset.
What is EBLR in a Union Bank solar loan?
EBLR stands for External Benchmark Lending Rate. Union Bank prices its solar loans as EBLR plus a small spread (usually 0.10% to 0.50%). EBLR is itself linked to the RBI repo rate, so when the RBI cuts or raises rates, your loan EMI moves accordingly within 90 days. This makes EBLR-linked loans more transparent than older MCLR-linked loans, but it also means your EMI is not fixed for the full tenure.
How long does a PM Surya Ghar solar loan take to approve?
Typical end-to-end timeline is 7 to 21 days at SBI, Canara, and Union Bank, assuming complete documentation. The fastest route is via the Jan Samarth portal (jansamarth.in) which is the government's single-window loan portal and is integrated with the PM Surya Ghar application flow. Branch-level applications can take longer if the bank needs to verify your DISCOM application status manually.
Can I pre-pay my solar loan with the central subsidy?
Yes, and this is the recommended strategy. The PM Surya Ghar central subsidy (up to ₹78,000 for a 3 kW system) is credited directly to your bank account 30 to 45 days after commissioning. Most participating banks allow you to use this credit as a part-payment toward your loan principal with zero pre-payment penalty under the scheme. This drops your outstanding principal by roughly half, which materially shortens your effective tenure or your monthly EMI.
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