PM Surya Ghar Muft Bijli Yojana: The central government runs numerous schemes to benefit the public and provide significant advantages to common citizens. One such initiative is the ‘PM Surya Ghar Muft Bijli Yojana’ (PM Surya Ghar Free Electricity Scheme). This scheme encourages people to install solar power systems. If you do not wish to pay the full cost upfront, you can avail a solar rooftop loan from a bank. Eligible individuals can access bank loans to install these solar systems, though certain conditions must be met. Let us explore the details.
What is the PM Surya Ghar Muft Bijli Yojana?
The PM Surya Ghar Muft Bijli Yojana is an excellent government-run scheme. Its primary objective is to promote rooftop solar installations on residential buildings, enabling households to meet part of their electricity needs through solar energy. The government provides a subsidy for installing solar panels. Additionally, eligible customers can install solar rooftop systems by obtaining a bank loan.
Who is eligible for the solar rooftop loan?
Banks have established specific criteria for availing the benefits of this scheme. The primary requirement is that the applicant must be a resident of India and at least 18 years of age (separate rules apply for senior citizens). Having a rooftop is also mandatory; if the house has a suitable roof, the individual is eligible to install the solar system.
Mandatory electricity connection
The applicant must have a valid electricity connection at their residence. According to the eligibility criteria, the electricity connection must be registered in the applicant’s name. Therefore, before applying for the solar loan, ensure that all documents related to the electricity connection are in order.
Required CIBIL score
Please note that the CIBIL score requirements for obtaining a solar rooftop loan may vary depending on the loan amount. For instance, if a loan of up to ₹2 lakh is sanctioned, there is no mandatory minimum CIBIL score requirement; in some cases, individuals without a prior credit history can also apply. However, a minimum CIBIL score of 650 is required for loans ranging from ₹2 lakh to ₹6 lakh. Please note that bank terms and conditions are subject to change.
Registration on the PM Surya Ghar Portal is Mandatory
Registering on the PM Surya Ghar National Portal is essential for installing a rooftop solar system. The application process requires providing details regarding the house, electricity connection, and the solar system itself. You can complete the remaining steps through the portal.
Use the Jan Samarth Portal for Loans
If you want a bank loan to install a solar system, you can apply through the Jan Samarth Portal. The portal provides information on eligibility criteria and available loan options. After you apply, the bank verifies your application and documents according to its policies.
Essential Documents
Certain specific documents are required to secure the loan. These include an Aadhaar card, PAN card, bank account details, electricity connection documents, proof of home ownership (specifically regarding the roof), income-related documents, passport-sized photographs, and a cost estimate for the solar system.
Points to Consider When Taking a Loan
When seeking a bank loan for solar panel installation, looking only at interest rates is not enough. You should also gather information regarding the loan tenure, EMI, processing fees, and other applicable charges. Also, verify the subsidy amount you are eligible for and understand the subsidy application process.
Conclusion
Under the PM Surya Ghar Muft Bijli Yojana, eligible individuals can avail of bank loans to install solar systems on their rooftops. To qualify, the applicant must be a resident of the country and at least 18 years of age. Compliance with conditions such as having a suitable roof and a valid electricity connection is also mandatory. Notably, the loan amount is determined based on the applicant’s CIBIL score. CIBIL score does not matter for loans up to ₹2 lakh. However, for loans ranging from ₹2 lakh to ₹6 lakh, the bank has set a specific CIBIL score requirement.