Scheme for financing installation of Solar Energy Home Lighting System

1. Objective –

   To provide renewable source of energy to rural/ semi-urban people by using solar energy

2. Purpose –

   To consider finance for installation of Solar Energy Home Lighting System with necessary accessories from reputed manufacturers/ suppliers/ authorized dealers.

3. Eligibility-

   Households in rural/ semi-urban/ urban centres, small business establishments, hotels, hospitals, restaurants, etc. which have an assured source of income.
   Focussed attention to be made to make available Solar Energy Home Lighting System to our established Kisan Credit Card/ Kisan Samadhan Card holders from each Branch.  The Bank has a customer base of more than 10 lakh KCC holders.
   

4. Type of Loan –

   Medium Term Loan repayable in instalments.

5. Quantum of loan –

   75% to 85% of the project cost  which includes costs of the system, accessories, transportation , installation and commissioning.

6. Margin –

   15% to 25% of the project cost.

7. Security –

   Upto a limit of Rs.50,000/-         - Hypothecation of Solar Energy Home
   Lighting System.
   Limit above Rs.50,000/- - i) Hypothecation of Solar Energy Home
   Lighting System; and
   ii) Mortgage of land or collateral security in the
   form of LIC policy/ NSC/ Term Deposits, etc
   iii) Suitable third party guarantee. 
   

8. Repayment –
   

   Finance extended to farmers : 5 to 7 yearly instalments alongwith interest.
   Finance made to others : Advance to be repaid in monthly instalments in 5 – 7 years.   Interest should be serviced as and when applied. 

9. Disbursement –

   Disbursement will be made directly to the suppliers of solar lighting system after installation of the unit against original invoices, stamped receipts, delivery note duly acknowledged by the borrower.  The borrower should confirm to the Bank that he has received the system in good condition and it is working satisfactorily.

10. Rate of interest –

    As prescribed by Head Office for agricultural advances, from time to time.