Short answerPublic sector banks offer collateral-free rooftop solar loans for homes under PM Surya Ghar, with rates for systems up to 3 kW that have been around 7% a year (repo-linked). On a ₹1.2 lakh loan over five years, the EMI is about ₹2,400, close to the ₹2,800–3,500 a 3 kW system saves each month.
Typical loan terms
- Margin: you pay about 10% upfront; the bank funds the rest of the approved cost
- Tenure: up to 10 years
- Rate: concessional for systems up to 3 kW; higher for larger systems
- Documents: KYC, electricity bill, income proof, vendor quotation
Rates and terms change with RBI policy and bank schemes; confirm with your branch before deciding.
EMI vs saving
Use our EMI calculator: enter the loan amount, rate, tenure and your bill to see whether the saving covers the instalment. After the loan closes, the full saving stays with you for the remaining 15–20 years of panel life.
Smart way to use the subsidy
When the subsidy reaches your account, prepaying part of the loan shortens the tenure and cuts interest. Check that your loan has no prepayment penalty.
Frequently asked questions
Do I need collateral for a solar loan?
For small residential systems under the PM Surya Ghar scheme, public sector banks offer collateral-free loans. Larger amounts may need security.
Is the subsidy deducted from the loan?
The subsidy is paid to your bank account after commissioning. Many borrowers use it to prepay part of the loan, which reduces interest.