Good News! SBI is Offering Cheap Loan Scheme for Setting up Rooftop Solar Plant; Apply This Way

India’s largest money lender State Bank of India has recently come up with new scheme for setting up rooftop solar plant. MSME’s (micro, small and medium enterprises) have lots of scope in India to improve business efficiency by installing solar plants on roofs. Moreover, the central and state government has been focusing on solar power to empower the agricultural sector to double farmer's income. 

The demand for solar panels is rapidly increasing across India. You can get employment besides earning good income through the solar power scheme of Modi government. Moreover, solar power business is the rapidly growing business in India which can give good money in return.  

You can make a good income by joining this scheme where you can generate and sell electricity through solar power. Today we are going to tell you how electricity can be produced and sold through this scheme.  

SBI-World Bank Rooftop Solar PV Program 

Union Minister Nitin Gadkari says that micro, small and medium enterprises (MSME) can improve business efficiency by installing solar plants on roofs. For this, the Union Minister requested MSMEs to apply for a loan scheme at a cheaper rate. Gadkari referred to the 'Solar Rooftop' funding program launched by World Bank in 2016, which is being implemented by SBI. 

Let's know the details of SBI and World Bank's rooftop solar PV program. 

Cheap loan scheme for rooftop solar plant 

SBI has specifically taken Line of Credit from the World Bank to help in installing solar plants on the roof. Under the Rooftop Solar PV Program, SBI is providing up to 75% of the total cost of the entire solar project as a loan. It is a kind of term loan. Under this, loans of more than 500 crores will be provided by all corporate account group branches of SBI, commercial clients group branches of loans from 50 crores to 500 crores and SME branches of loans up to 50 crores. 

What is Loan Repayment Period and Interest Rate? 

The interest rate for the loan will be an additional interest rate ranging from 0.12 per cent to 0.19 per cent depending on the risk rating of the SBI's 6-month MCLR plus customer. Loans given to MSMEs will be linked with external benchmark rate. Up to 15 years will be given to repay the loan. Moratorium period is 12 months from the date of commencement of commercial operations. 

Who Can Take a Loan for Rooftop Solar PV Program? 

Any person can apply as a sole proprietor, with a loan from Partnership Firm / Incorporating LLP and Company / Special Purpose Vehicle / NBFC Borrowers or their parent company / sponsor SBI for installation of Rooftop Solar System. For this, the interested person should have at least 1 year experience or past track record in the power sector. He should have a CRA rating of SB-10 and above, as well as an investment grade ECR. 

Primary and Collateral Security 

Exclusive first charge on all fixed assets, movable assets, current assets, lease hold rights, cash flow, project related accounts and their rights etc. will have to be handed over to the bank. The assignment of the project document will also be with the bank as security. If the customer's FACR is below 1.25, then SBI can ask for collateral security. 

Important Documents for SBI-World Bank Rooftop Solar PV Program 

• ID or address proof of applicant and guarantor like- Voter ID, PAN number, Aadhaar number etc.

• Income tax returns, wealth tax returns for the last 3 financial years of the applicant and guarantor.

• The annual report of the business of the applicant and its associates for the last three years, containing an audited balance sheet and trading and profit or loss accounts.

If the applicant is a company, then its Memorandum and Articles of Association, Certificate of Commencement of Business. Sales tax returns of last three years, copy of detailed project report, projected balance sheet, profit and loss account, cash flow statement, copy of resource study, etc. will also be incurred. 

How will the Guarantee be Given? 

If a person / partnership firm / company applies for a loan for rooftop solar power production, then personal guarantees of proprietors / partners / directors will be sought. Corporate loan guarantee of the sponsor will be required for taking loans from Special Purpose Vehicles / Associates / Subsidiaries.