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 Solar Loans in 2025
Most public sector banks have aligned their rooftop solar loan products with the PM Surya Ghar scheme guidelines. Here is a detailed comparison:
| 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 |
Sources: PM Surya Ghar Official Portal, SBI Official, Canara Bank
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.
Need Help with Financing?
R-Solar Support Team
We have direct tie-ups with SBI and Canara Bank branch managers in Bhopal to speed up your loan application. Let us handle the paperwork.
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