PM Surya Ghar Muft Bijli Yojana: Banks Offering Collateral Free Loans Up to Rs.2 lakh; Here is How You can Apply

PM Surya Ghar Muft Bijli Yojana (PMSGMBY) is a government initiative launched by Prime Minister Narendra Modi in February 2024 that aims to offer free electricity to households in India. Under this scheme, the households receive a subsidy of up to 40% to cover the cost of installing solar panels on their roofs. It is the world’s largest domestic rooftop solar initiative that has empowered 10 lakh homes with solar energy as of March 10 this year.

As per the Ministry of New and Renewable Energy, the scheme has received around 47.3 lakh applications. The government has spent up to Rs. 4770 crore in subsidies to 6.13 lakh beneficiaries. The government is aiming to provide solar energy to 20 lakh households by October and one crore households by March 2027.

Benefits offered by Bank as a part of this Scheme

Under this scheme, 12 public sector banks are offering collateral-free loans up to Rs.2 lakh at a 6.75% marginal interest rate. The other benefits include:

• Subsidy up to Rs.78,000: The government is giving a subsidy upto Rs.78,000 to financially help people who install solar panel systems.
• Loan up to Rs.6 lakh at a low interest rate: You can get a loan up to Rs.6 lakh to install solar panels. The rate of interest starts at just 6.75% per annum, which is lower compared to most regular loans.
• No income proof required for a loan up to Rs. 2 lakh: You don’t have to show any income documents, such as salary slips or bank statements, for a loan up to Rs.2 lakh. This makes the process smoother and simpler, without any complications.
• Finance up to 90% of the installation cost: The banks are covering up to 90% of the total installation cost through the loan.

Who is Eligible under this Scheme?

To be eligible for this scheme, the households must satisfy the following conditions:

1. The household must be an Indian citizen.

2. The household is required to have a legal electricity connection.

3. The household must own a house with a proper roof where solar panels can be installed without any problems.

4. Households that have already received a subsidy for solar panel installation from another scheme are not eligible under this scheme.

How to apply for PM Surya Ghar Muft Bijli Yojana?

Step 1: To apply for the scheme, go to the official website, i.e., https://pmsuryaghar.gov.in/.

Step 2: Navigate to the consumer tab and click on “Apply now” or open the login dropdown menu and select “Consumer Login.”

Step 3: Provide your mobile number for login and verify it. Submit other details like name, state, etc. Verify your email address and save your profile.

Step 4: Select ‘Yes’ or ‘No’ based on whether you need a vendor’s help for the installation.

Step 5: Click on the ‘Apply for Solar Rooftop’ button and provide necessary details like state, district, discom, and others.

Step 6: Once your application is approved, select a vendor and provide the necessary bank details to receive the subsidy.