How to Get Collateral Free Solar Loan?

The current energy situation in India is dealing with energy crisis of future in the country. The power consumption in the country is rising and the supply is not being fulfilled, resulting power cuts for long hours in both rural and urban cities. Hence, the India government is promoting ‘Solar Energy’ in India.

The citizens in India are now looking for solar power as their primary source of energy for their homes and to procure solar systems, they are now opting for ‘Solar Loans’ just like any other type of loans. Solar Loan is becoming a popular trend in India. The governments (local and central) are now providing subsidy on solar products to promote clean energy initiatives.

What is ‘No Collateral Solar Loan’?

The word collateral means, “something pledged as security for repayment of a loan, to be forfeited in the event of a default,” and no collateral loan means, while procuring a loan (any preferred type) no security will be taken by the bank (documents like FD, SIP, House papers, etc, or any physical security like Car, Gold, etc).

In ‘No Collateral Solar Loan Scheme’, a person can get a solar loan of up to rs. 1 crore with an interest rate of 8.25%. The interest rate is quite low given the high price amount, due to these major factors, ‘No Collateral Solar Loan’ is becoming popular in India.

A company has been set-up for this type of loan scheme, Electonica Finance Limited performs loan scheme operations and provide loan under these schemes. To know more about the loan scheme visit https://www.efl.co.in/.

What could be the possible results?

The results after the success of this scheme will be beneficial for both government and public. The possible outcome may witness a decline in the subsidy on solar systems. People will be able to install more solar systems due to the major benefits and less cost of buying a solar system. Currently there are many states who are witnessing a growth in the ‘No Collateral Solar Loan Scheme’. 

Local DISCOM’s role in the scheme:

The local DISCOM (Distribution Company) will perform the role of recovery of solar systems if, the buyer or the user who has purchased the solar system through ‘No Collateral Solar Loan’ is unable to repay the instalments. The DISCOM will also conduct legal actions against the defaulters.

*(Currently, there are 96 local DISCOMs that are operating in India)

As per the future predictions on solar system and its usage, it is said that the power distribution companies (DISCOMS) will also enjoy the benefit from solar systems, as the solar system consumer can sell the over-produced power to local DISCOMs, which is less than the current rate of rs. 3.50 rs of power producing companies like Nuclear / Coal power plants.

As per the current policy of Indian government, the power industry in India is an ‘Open Access’ model, which means that the production of electricity can be distributed to anywhere in India.

Necessity of Renewable Energy Certificate (REC)

Renewable Energy Certificate (REC), this certificate is given to local DISCOMs, through this they can buy electricity from solar power producing consumers. This decreases the dependency of DISCOMs from the power plants.

How much capacity of solar system can be installed in 1 crore rupees?

A project of 300 kW (Kilo Watt) solar system can be installed in 1 crore rupees. For 1 mW (Mega Watt) a minimum price of rs. 4 crores is required. To install a 300 kW solar system, a minimum of 4450 sqft area is required.

How to apply for the loan under ‘No Collateral Solar Loan Scheme’?

To apply for the loan, visit our website at https://loan.loomsolar.com/ and follow the given information.

Who can apply for the loan?

The major factor that contributes the most is the financial status of a person who can apply for the loan. A good financial status can make the process easy and quick. The applier can also opt for Central government’s scheme ‘PM Kusum Yojna’ – Component (A).

Conclusion

The usage of solar power is the best for of renewable source of energy. As per the current focus of Indian government, solar energy will soon become more affordable in India and people will chose solar energy over the non-renewable energy sources. The success of these schemes is also a good sign for environment and our surrounding.

To know more about solar system and how to properly usage a solar system and get ‘0 Electricity Bill’ visit Loom Solar’s website at www.loomsolar.com