PM Surya Ghar Loan and EMI Options

Financing is the single biggest reason a residential solar sale either closes or dies on your doorstep. Most homeowners in India have the intent, what they don't have is ₹1.5–2.5 lakh sitting in a savings account. PM Surya Ghar Muft Bijli Yojana changed that equation by tying the central subsidy directly to a concessional-loan network spanning multiple public-sector banks and NBFCs.

But here's where most EPCs leave money on the table: they know the subsidy exists, they don't know which bank is fastest, cheapest, or most flexible for a specific customer profile. This guide gives you the complete EMI comparison, every partner bank, every system size, so your sales team can answer the financing question in the field, not "let me get back to you."

Understanding the full financing stack, central grant + state top-up + concessional loan, is what separates EPCs that convert 1-in-5 leads from those converting 1-in-8. Let's walk through every option available in 2026.

What the PM Surya Ghar Loan Network Looks Like

The PM Surya Ghar Muft Bijli Yojana, launched by the Government of India under the Ministry of New and Renewable Energy (MNRE), is not just a subsidy, it is a co-ordinated financing stack. The PM Surya Ghar National Portal reported over 1.4 crore registrations by early 2026, making this the largest residential solar programme India has ever run.

The subsidy structure under the scheme is fixed:

• 1 kW system: ₹30,000 central subsidy
• 2 kW system: ₹60,000 central subsidy
• 3 kW or above: ₹78,000 central subsidy (capped)

These grants are deposited directly into the beneficiary's bank account after commissioning and DISCOM (Distribution Company) inspection. To bridge the gap between subsidy credit and upfront cost, MNRE tied up with public-sector banks to offer ring-fenced solar loans at concessional rates.

Check PM Surya Ghar eligibility first to confirm your customer qualifies before presenting any bank option. The loan and subsidy are linked, a non-eligible applicant will get neither.

The key banks empanelled under the scheme as of June 2026 are:

1. State Bank of India (SBI), Surya Shakti Solar Finance
2. Bank of Baroda (BoB)
3. Canara Bank
4. Punjab National Bank (PNB)
5. Union Bank of India
6. Indian Renewable Energy Development Agency (IREDA), for certain project categories

SBI Surya Shakti Solar Finance, the Benchmark

State Bank of India runs the largest solar loan book in India under its Surya Shakti Solar Finance product. For PM Surya Ghar beneficiaries, SBI offers preferential pricing because MNRE has a formal co-lending arrangement that reduces the bank's risk.

Rate: 7.00%–8.50% p.a. (floating, linked to MCLR). Borrowers with CIBIL score ≥ 750 typically get the 7% floor. A score between 700–750 pulls the rate to 7.75%; below 700 means 8.50% or loan refusal.

Tenure: Up to 10 years (120 months).

Processing fee: 0.50% of loan amount, minimum ₹500, maximum ₹10,000, plus GST at 18%.

Loan amount: ₹50,000 to ₹10 lakh per household for residential rooftop.

Collateral: None required for loans up to ₹3 lakh. Above ₹3 lakh, third-party guarantee or a simple mortgage note is standard.

Disbursement mode: Direct to empanelled vendor (your account, if you're registered). The customer's subsidy is credited to a separate escrow-like account and auto-applied to the outstanding principal, a significant cash-flow advantage.

For a deeper walkthrough of the application steps at SBI and other banks, see the PM Surya Ghar application process guide.

Bank of Baroda, Faster Processing, Slightly Higher Rate

Bank of Baroda (BoB) competes directly with SBI on PM Surya Ghar solar loans, with a faster average sanction time (12–15 working days vs SBI's 18–22 days, based on field feedback from QuickEstimate users in Gujarat and Rajasthan).

Rate: 8.00%–9.50% p.a. (floating). BoB's solar loan is pegged to its 1-year MCLR + a spread that varies by branch. As of Q1 2026, the effective rate for borrowers with CIBIL ≥ 720 was 8.40%.

Tenure: Up to 7 years for amounts below ₹2 lakh; up to 10 years above.

Processing fee: 1.00% of loan amount, minimum ₹1,000, no cap mentioned in recent product brochures.

Unique feature: BoB has a dedicated "Baroda Solar Loan" desk at most urban branches, and their relationship managers are trained specifically on PM Surya Ghar documentation. This matters when your customer is a first-time loan applicant with incomplete paperwork.

Canara Bank, Best for Rural and Semi-Urban Customers

Canara Bank has the deepest branch network across Tier 2 and Tier 3 towns, which matters for EPCs serving customers in places like Rajkot, Nashik, or Madurai. Their solar loan product is straightforward but documentation-heavy.

Rate: 8.50%–10.00% p.a. Fixed-rate option available for tenure up to 5 years at 9.25%, which gives customers certainty on EMI.

Tenure: Up to 10 years.

Processing fee: 0.25% of loan amount, minimum ₹1,000.

Advantage: Canara Bank accepts Kisan Credit Card (KCC) holders for subsidised solar loans under a rural variant, relevant if you're working in agricultural-connection zones where many PM Surya Ghar applications originate.

Disadvantage: Digital approval workflow is less mature. Expect more branch visits compared to SBI or BoB. Customers in semi-rural areas without strong CIBIL history may face collateral requests even below ₹3 lakh.

Punjab National Bank (PNB), Solar Term Loan

PNB's solar product sits in its retail loan catalogue as a variant of the personal loan product, tagged for renewable energy.

Rate: 9.00%–11.00% p.a. PNB's rate band is widest among the five, which means more variance based on the branch manager's discretion. Government employees (Central/State) get a 50 bps reduction as a perk.

Tenure: Up to 7 years.

Processing fee: 1.00% of sanctioned amount, minimum ₹1,500.

Documentation: PNB requires a detailed project report from the installer alongside the standard KYC package. This is a de-facto quality filter, incomplete proposals from the vendor side stall the application. This is one reason using QuickEstimate's Proposal Generator matters: the PDF output meets the format most banks accept as the project report without requiring a separate document.

Union Bank of India, Strong in Maharashtra and South India

Union Bank of India (formed after the amalgamation of Andhra Bank and Corporation Bank) has particular strength in Maharashtra, Telangana, and Karnataka, three states with high PM Surya Ghar uptake.

Rate: 8.75%–10.50% p.a. (floating). Special rate of 8.75% for women borrowers as the primary applicant.

Tenure: Up to 10 years.

Processing fee: 0.50% of loan amount, minimum ₹500.

Unique feature: Union Bank offers a 6-month moratorium on principal repayment, which aligns well with the PM Surya Ghar subsidy disbursement timeline. The customer effectively pays interest-only for the first 6 months, EMI restarts on full principal after that. For customers in MSEDCL (Pune) or BESCOM (Bengaluru) zones where commissioning-to-subsidy timelines stretch to 60–90 days, this moratorium is a meaningful feature to highlight.

Master EMI Comparison Table, 1 kW, 2 kW, 3 kW Systems

The tables below assume: (a) total installed cost at ₹55,000/kW (MNRE benchmark for residential systems with Tier 1 modules), (b) central subsidy applied upfront to loan principal, (c) no state top-up subsidy included (see PM Surya Ghar subsidy slabs for state-wise additions).

1 kW System: Total cost ₹55,000, subsidy ₹30,000, net loan ₹25,000

2 kW System: Total cost ₹1,10,000, subsidy ₹60,000, net loan ₹50,000

3 kW System: Total cost ₹1,65,000, subsidy ₹78,000, net loan ₹87,000

The PM Surya Ghar Subsidy Stack, How Financing Layers Work Together

This is the proprietary framework every Rohit-type EPC owner should teach their sales team. The PM Surya Ghar Subsidy Stack has three tiers:

Tier 1: Central Grant, ₹30,000 / ₹60,000 / ₹78,000 from MNRE, credited post-commissioning via DBT.

Tier 2: State Top-Up, Several states add their own subsidy on top. Gujarat adds ₹10,000–₹20,000 for residential, Rajasthan offers ₹5,000–₹15,000. These are credited separately and may arrive 30–90 days after the central subsidy. Review the PM Surya Ghar subsidy slabs page for the current state-level breakdown.

Tier 3: Concessional Loan, The five banks above offer solar-linked term loans at 7–11% versus personal loan rates of 14–18%. The rate differential on a ₹1 lakh loan over 7 years is approximately ₹23,000–₹37,000 in total interest savings.

When you present all three tiers together, grant, top-up, and concessional loan, the customer's effective cost of going solar drops dramatically. Here's how to explain it at a site visit:

1. 1

   Show the gross cost

   Tell them the full installed cost (e.g., ₹1.65 lakh for 3 kW). Don't hide it, it builds trust and sets up the subsidy reveal.

2. 2

   Subtract Tier 1 (central subsidy)

   ₹78,000 off for 3 kW, bringing the net to ₹87,000. Explain that this is direct-to-bank, not a cashback, their loan principal is reduced automatically.

3. 3

   Add Tier 2 (state top-up if applicable)

   In Gujarat, an additional ₹10,000–₹20,000 from the state further reduces the loan. Effective net in DGVCL zone: ₹67,000–₹77,000.

4. 4

   Present the EMI options (Tier 3)

   Show them three bank options with EMIs side-by-side. At SBI rates on a ₹77,000 net loan for 10 years, EMI is around ₹895/month, less than a typical electricity bill.

5. 5

   Show the net monthly saving

   If their monthly bill is ₹2,500, they save ₹2,500 and pay ₹895 EMI, net saving of ₹1,605/month from month one. That's the close.

Eligibility Requirements Across Banks

Knowing what each bank requires upfront saves your customer a second site visit and saves you a lost sale. The requirements below apply specifically to PM Surya Ghar-linked solar loans, not generic personal loans.

One prerequisite that all five banks share: you must be an empanelled vendor on the PM Surya Ghar portal. If you're not on the panel, no bank will disburse a PM Surya Ghar-linked solar loan, because the disbursement goes to the vendor account directly. This is one of the most common PM Surya Ghar rejection reasons at the bank stage.

Pros and Cons of Bank Financing vs Upfront Payment

Not every customer should take a loan. Here's the honest comparison:

What Installers Must Do Before Sending the Customer to the Bank

Most sales stall at the bank because the customer arrives without the right documents or without a proper project report. Here's your field preparation checklist, drawn from IREDA's published guidelines for PM Surya Ghar solar financing and feedback from EPCs operating in Gujarat (DGVCL), Maharashtra (MSEDCL), and Karnataka (BESCOM):

• Customer's PM Surya Ghar portal registration number, without this, no bank can initiate a PM Surya Ghar-linked loan. Help the customer register on the national portal during or immediately after your site visit.
• Your vendor empanelment certificate, print and carry a copy. Bank relationship managers verify this on-site.
• Signed project report / proposal, most banks accept a professional PDF with system size, module brand, inverter spec, ALMM compliance note, and projected generation. This is exactly what QuickEstimate's proposal output provides.
• DISCOM feasibility approval, the bank wants to see that the DISCOM has given an in-principle green light. In states like Gujarat (DGVCL), this can be obtained within 5–7 working days after application. See the PM Surya Ghar application process guide for state-by-state timelines.
• Customer's last 3 electricity bills, needed to confirm the sanction load and existing connection type.
• CIBIL report awareness, run a soft-check conversation. If the customer's score is below 720, suggest they apply at SBI or Canara Bank first (both have slightly more flexible underwriting criteria) rather than PNB.

For the full sales pitch structure, including how to introduce financing before the customer raises the cost objection, read our guide on how to pitch PM Surya Ghar to customers.

How QuickEstimate Fits into the Bank Financing Workflow

Most EPCs treat the bank loan as the customer's problem. The ones who convert best treat it as part of their sales process. Here's how QuickEstimate changes the workflow:

When a lead comes in through your Lead Capture (from IndiaMART, Facebook, or your website), the first thing your sales rep does is add them to the pipeline with a tentative system size. From that single action, QuickEstimate can generate a branded proposal PDF with the full subsidy stack pre-calculated, central grant, state top-up, and a representative EMI from the best-fit bank, all without the rep doing any manual math.

• Proposal Generator, produces a bank-ready project report PDF in 60 seconds with system specs, ALMM compliance note, subsidy amounts, and EMI comparison pre-filled. Works as the project report that SBI and PNB require.
• WhatsApp Follow-up, send the proposal and financing summary to the customer on WhatsApp and track when they open it. Know when to call back before the competitor does.
• Pipeline Management, see which leads are stuck at "waiting for bank sanction" vs "ready to close" and ensure no deal sits idle for 3+ weeks unattended.
• Sales Reports, track which bank-financing offers are converting and which are stalling. If BoB leads are closing 30% faster, you know to push that option first in your territory.

For EPC owners thinking about how to build a team that can run this workflow at scale, the solar sales funnel India guide maps out the full pipeline from lead to commissioning.

IREDA, the Wholesale Option for Larger Installers

Indian Renewable Energy Development Agency (IREDA) doesn't lend directly to retail customers for residential solar, it operates as a wholesale financier and refinancing body. But for EPCs that are doing volume (10+ projects/month), IREDA offers two relevant options:

1. Line of credit to EPCs: IREDA extends working-capital lines to empanelled EPC companies for solar project pre-financing. If you're front-funding installations before subsidy arrives, an IREDA line is worth exploring.

2. Refinancing to retail banks: IREDA provides low-cost funds to the five banks above, which is why their solar loan rates are lower than standard retail rates. According to Central Electricity Authority (CEA) data, the IREDA-refinanced solar loan portfolio had an NPA rate below 2% as of FY25, making these products sustainable for banks too.

If you're scaling beyond residential into commercial projects, understanding how much capital to start a solar business at each tier is essential reading before approaching IREDA for a facility.

What to Do This Week for Your EPC

Three concrete actions you can take in the next seven days to make bank financing a sales accelerator rather than a bottleneck:

1. Build a one-page bank comparison sheet for your territory. Pull the 3 kW EMI numbers from the tables above, add the local DISCOM and any state top-up applicable in your state, and print it. Your sales boys should have this laminated. When a customer asks "how much will it cost me per month?", the answer should come in 30 seconds, not "let me check and come back."

2. Verify your empanelled vendor status. Log into the PM Surya Ghar portal and confirm your empanelment is active. If it has lapsed or is pending renewal, your customer's bank application will be rejected at the disbursement stage. The empanelled vendor guide walks through the renewal process.

3. Start generating bank-ready proposals from QuickEstimate. If you're sending customers to the bank with a handwritten quotation or a generic Excel sheet, you're losing days. Start with the free plan, 10 proposals/month at no cost, and see if your sanction-to-commissioning cycle shortens. Download the app or start your free plan today.

Frequently Asked Questions

What is the interest rate for PM Surya Ghar bank loans in 2026?

PM Surya Ghar solar loan interest rates range from 7.00% to 11.00% p.a. depending on the bank and the borrower's credit profile. SBI Surya Shakti Solar Finance offers the lowest published rate at 7% for borrowers with a CIBIL score of 750 or above. Bank of Baroda sits at 8.00–9.50%, Canara Bank at 8.50–10.00%, PNB at 9.00–11.00%, and Union Bank at 8.75–10.50%. All rates are floating unless a fixed-rate product is chosen (Canara Bank offers this for tenures up to 5 years).

What is the EMI for a 3 kW solar system under PM Surya Ghar?

After the ₹78,000 central subsidy reduces the principal to approximately ₹87,000 (on a ₹1.65 lakh installed cost), a 3 kW system EMI ranges from about ₹1,010/month (SBI, 10-year tenure, 7%) to ₹1,404/month (PNB, 7-year tenure, 9.5%). The lowest possible EMI comes from combining SBI's rate with a 10-year tenure and adding any applicable state top-up subsidy to further reduce the principal.

Can I get a PM Surya Ghar loan without a good CIBIL score?

Most partner banks require a minimum CIBIL score of 700. If your customer's score is below 700, standard PM Surya Ghar bank loans will likely be declined. Options include: (a) applying under a joint loan with a co-applicant who has a better score, (b) approaching a Non-Banking Financial Company (NBFC) that has a partnership with the local DISCOM, or (c) waiting 6–12 months to improve the score before applying. A score between 700–720 typically still qualifies at SBI and Canara Bank, though at the higher end of the rate band.

How long does PM Surya Ghar loan approval take?

Bank of Baroda has the fastest documented sanction time at 12–15 working days for borrowers with complete documentation. SBI takes 18–22 working days. Canara Bank and PNB are in the 15–20 working day range. Union Bank averages 14–18 working days. Total timeline from application submission to disbursement (including DISCOM feasibility) is typically 30–45 working days.

Is the PM Surya Ghar subsidy deducted from the loan or paid separately?

The subsidy is credited directly to the beneficiary's bank account by the government after commissioning and DISCOM inspection. However, many banks (particularly SBI) have a mechanism to apply the subsidy amount directly to the outstanding loan principal, which reduces future EMIs or shortens the tenure. The customer does not receive a cheque, the bank coordinates the DBT (Direct Benefit Transfer) credit internally.

Do I need to be registered on the PM Surya Ghar portal to get a bank loan?

Yes. All five partner banks require proof of PM Surya Ghar registration before processing a solar loan. The registration number is a mandatory field in the bank's loan application form. Your customer registers at pmsuryaghar.gov.in using their electricity bill (consumer number) and Aadhaar-linked mobile number. Registration is free and takes 10–15 minutes.

Can an EPC apply for the bank loan on behalf of the customer?

No. The loan application must be in the homeowner's name, it is a consumer loan, not a business loan. However, the EPC plays a critical supporting role: providing the project report, confirming vendor empanelment, and helping the customer gather the required documents. Some banks have dedicated EPC relationship managers for high-volume installers.

What happens if the subsidy is delayed after I commission the system?

The customer is liable for full EMIs from month one regardless of subsidy timing. Subsidy delays of 30–90 days are common, especially in states with high application volumes. Union Bank's 6-month moratorium on principal is one option to buffer this. Alternatively, if you're operating in Pune (MSEDCL zone) or Chennai (TANGEDCO zone), plan for a 60–90 day subsidy gap in your customer's cash-flow discussion. According to MNRE, the average subsidy disbursement time is being compressed to under 30 days through portal automation updates in 2026, but field experience varies.