Solar Loan: How to Get Solar System at 5-7% Interest? Complete Guide for SBI, PNB, BOB & All Banks
How to get solar loan in UP? Learn interest rates, eligibility, documents and complete process for SBI, PNB, BOB, Bank of India and all banks. Solar system on easy EMI under PM Surya Ghar Yojana.
Solar Loan: How to Get Solar System at 5-7% Interest? Complete Guide
In Uttar Pradesh, you don't need to pay the full cost of a solar system upfront. All major banks including SBI, PNB, BOB, and Bank of India offer solar loans. Combined with the PM Surya Ghar Yojana subsidy, these loans make solar very affordable. Let's learn complete process, interest rates, eligibility, and documents.
📑 In this article:
What is Solar Loan?
A solar loan is a specialized home improvement loan that banks provide for installing solar rooftop systems. Under the PM Surya Ghar Muft Bijli Yojana in UP, you get up to ₹78,000 central subsidy and up to ₹30,000 state subsidy. Banks give you a loan on the total system cost (including subsidy). The subsidy amount is credited directly to your bank account after loan approval.
💡 Important: Solar Loans Are NOT 0% Interest
You may see claims of 0% interest, but solar loans actually have 5-7% interest rates. This rate is much lower than personal loans (12-15%). Subsidy + low interest + electricity bill savings = great value!
Solar Loan Interest Rates from Major Banks (5-7%)
| Bank Name | Interest Rate (Annual) | Total Loan Amount | Tenure |
|---|---|---|---|
| State Bank of India (SBI) | 6.70% - 7.30% | ₹50,000 - ₹5,00,000 | Up to 10 years |
| Punjab National Bank (PNB) | 6.80% - 7.40% | ₹50,000 - ₹5,00,000 | Up to 10 years |
| Bank of Baroda (BOB) | 6.90% - 7.50% | ₹50,000 - ₹5,00,000 | Up to 10 years |
| Bank of India (BOI) | 6.85% - 7.25% | ₹50,000 - ₹5,00,000 | Up to 10 years |
| Canara Bank | 7.00% - 7.60% | ₹50,000 - ₹5,00,000 | Up to 10 years |
| Union Bank of India | 6.90% - 7.35% | ₹50,000 - ₹5,00,000 | Up to 10 years |
| HDFC Bank | 7.20% - 7.80% | ₹50,000 - ₹5,50,000 | Up to 10 years |
| ICICI Bank | 7.30% - 7.90% | ₹50,000 - ₹5,50,000 | Up to 10 years |
| Axis Bank | 7.40% - 8.00% | ₹50,000 - ₹5,00,000 | Up to 10 years |
| IDBI Bank | 6.95% - 7.45% | ₹50,000 - ₹5,00,000 | Up to 10 years |
| UCO Bank | 6.75% - 7.25% | ₹50,000 - ₹5,00,000 | Up to 10 years |
📌 Note:
Interest rates depend on your CIBIL credit score, loan amount, and bank policies. Those with 750+ CIBIL score get the lowest rates. PN Kinetic Sunrise can help you choose the right bank.
Eligibility Criteria for Solar Loan
Indian Citizenship - Must be an Indian citizen
UP Residency - Permanent residence in Uttar Pradesh
DISCOM Connection - Electricity connection from UPPCL/MVVNL/PUVVNL/DVVNL/KESCO in your name
Roof Ownership or NOC - Own the roof or have landlord's NOC
Age Limit - Typically between 21 and 65 years
CIBIL Score - Above 650 (750+ gives lowest interest rate)
Regular Income - Salaried or self-employed with stable income proof
Required Documents for Solar Loan
Complete Solar Loan Process (8 Steps)
Contact PN Kinetic Sunrise
We'll help you choose the right solar system and the right bank - 8924043854
Solar System Selection
Our team will do a site visit and suggest the right system for your needs.
Get Quotation
We'll provide a proforma invoice - required for bank loan application.
Choose Your Bank
We'll suggest banks with the lowest interest rates. You can also choose your preferred bank.
Apply to Bank
Submit loan application with all documents. We'll help with document submission.
Bank Verification
Bank will verify documents, credit score, and do a home visit. Approval in 3-7 days.
Loan Approval & Disbursal
After approval, bank transfers the amount to our account.
Installation & EMI Start
We install the system in 2-3 days. Your EMI starts the next month.
✅ How PN Kinetic Sunrise Helps
We don't just install solar - we help with loan process, choosing the right bank, document submission, and subsidy claim too.
Benefits of Solar Loan - EMI vs Electricity Bill
EMI < Electricity Bill
3kW system EMI ~₹1,600/month while electricity bill ₹2,500+. Savings start from month 1!
100% Financing
Banks give loan on total system cost (including subsidy). You pay zero down payment.
Better Credit Score
Paying EMIs on time improves your CIBIL score. Beneficial for future loans.
Subsidy + Loan Combo
Subsidy comes separately to your account. Loan is on total cost including subsidy.
EMI Calculator - How Much Will Your EMI Be? (10 Years Tenure)
| System Capacity | Total System Cost | Subsidy Amount | Loan Amount | Interest Rate | 10-Year EMI |
|---|---|---|---|---|---|
| 1kW | ₹61,670 - ₹75,000 | ₹45,000 | ₹61,670 - ₹75,000 | 6.5% | ₹700 - ₹850 |
| 2kW | ₹1,23,340 - ₹1,45,000 | ₹90,000 | ₹1,23,340 - ₹1,45,000 | 7% | ₹1,430 - ₹1,680 |
| 3kW | ₹1,85,000 - ₹2,05,000 | ₹1,08,000 | ₹1,85,000 - ₹2,05,000 | 7% | ₹2,150 - ₹2,380 |
📌 Example: How 3kW System Loan Works?
Total System Cost = ₹1,85,000 - ₹2,05,000
Bank gives loan on this full amount. Subsidy ₹1,08,000 comes separately to your account. At 7% interest for 10 years, EMI ≈ ₹2,150 per month. Your current electricity bill is ₹2,500/month - you save even while paying EMI! After EMI ends, 25 years of free electricity!
Bank-wise Comparison - Which Bank to Choose?
| Bank | Interest Rate | Processing Fee | Special Feature |
|---|---|---|---|
| SBI | 6.70% - 7.30% | ₹1,000 + GST | Lowest interest rate, branches across UP |
| PNB | 6.80% - 7.40% | 0.50% (min ₹1,500) | Up to ₹5L loan, 10 years tenure |
| BOB | 6.90% - 7.50% | 0.25% (min ₹1,000) | Fast processing |
| BOI | 6.85% - 7.25% | 0.35% (min ₹1,000) | Good branch network across UP |
| HDFC | 7.20% - 7.80% | 1.00% (min ₹3,000) | Completely online process |
🤔 Which Bank to Choose?
- Lowest Interest Rate? → SBI or UCO Bank
- Easiest Process? → SBI or BOB (low processing fee)
- Online Process? → HDFC (no branch visit needed)
Frequently Asked Questions About Solar Loan
❓ Is solar loan really 0% interest?
No, that's incorrect information. Solar loans have 5-7% interest rates. Banks charge normal home improvement loan rates.
❓ Can I get both subsidy and loan?
Yes, absolutely! Subsidy comes separately to your bank account. Loan is on total cost including subsidy. PN Kinetic Sunrise also handles subsidy claim.
❓ Do I need to make a down payment?
No, banks provide loan on total system cost (including subsidy). Zero down payment required.
❓ What if my CIBIL score is low?
Below 650 CIBIL may lead to rejection or higher interest rates (8-10%). Apply with a co-applicant.
❓ Can I add solar loan to my existing home loan?
Yes, many banks offer a top-up loan on your home loan for solar. Easier processing and lower interest.
❓ Are there special loans for farmers?
Yes, farmers can get solar loans at 5% interest under KCC (Kisan Credit Card). We help farmers too.
❓ What is the maximum solar loan tenure?
All major banks offer up to 10 years for solar loans. Longer tenure = lower EMI.
Need Help Getting a Solar Loan?
PN Kinetic Sunrise is not just a solar vendor - we help you choose the right bank, right loan, and handle the entire process. Call us today at 8924043854.