- Collateral-free loan up to ₹2 lakh from participating PSU banks.
- Indicative rate ~7% (roughly 6.5–7.15%), tenure up to ~10 years — verify current.
- Customer pays ~10% upfront; bank finances ~90% and pays the EPC directly.
- Subsidy is adjusted against the loan when the DBT is released.
- Present full payment vs loan to close more deals — and get paid faster.
Cost is the number-one reason a homeowner hesitates on rooftop solar. PM Surya Ghar's collateral-free loan removes most of that wall — and because the bank pays the installer directly, it also fixes the EPC's biggest cash-flow problem. An EPC who can confidently present financing closes more deals than one who only quotes a lump sum.
The collateral-free loan structure
The PM Surya Ghar loan is an unsecured loan of up to ₹2 lakh from participating public-sector banks for residential rooftop solar. There is no physical collateral — the solar system itself and the assignment of the subsidy act as the security. That is what makes it accessible to ordinary homeowners who could not pledge property against a small loan.
The loan is meant to cover the customer's net cost after subsidy, so it pairs directly with the ₹78,000 subsidy. For a typical 3 kW job the loan plus subsidy can cover almost the whole system, leaving the customer a small upfront amount.
Indicative rates and tenure
Rates are indicative around 7%, with banks quoting in roughly a 6.5%–7.15% band, and tenures running up to about 10 years. These are linked to bank benchmark rates and change often, so the table below is a starting point, not a promise — always confirm the current rate and tenure directly with the bank before you quote a customer.
Indicative — verify current rates and tenure with the bank. Rates are linked to bank benchmarks and change. Source: participating-bank list on the National Portal (pmsuryaghar.gov.in).
The 10% upfront + 90% financed flow
In a typical loan-backed job the customer pays about 10% upfront and the bank finances around 90%. The bank disburses the financed amount to the EPC's account, and the central subsidy is later adjusted against the loan when the DBT is released — reducing the customer's outstanding balance rather than coming to you.
Walking the customer through it
Spell the sequence out so there are no surprises: the customer pays a small upfront amount; the bank pays the rest to you and you install; after commissioning the subsidy lands and is adjusted against their loan; the customer repays the reduced balance over the tenure. The subsidy calculator is a good prop for showing the net cost and the rough loan amount live. Exact terms vary by bank — confirm before you promise numbers.
Presenting dual options to close more deals
The EPCs who win on financing present two clear options side by side: full payment, or a low upfront with a loan and the subsidy adjusted later. This reframes the decision from "can I afford ₹2 lakh today?" to "would I rather pay a small amount now and repay over years?" — and for most homeowners the second option unlocks the deal.
Keep it honest: show the loan rate as indicative, show the tenure, and show the net cost after subsidy. A customer who understands the full picture trusts you, and trust closes solar deals far more reliably than a hard sell. This ties straight into healthy pricing and margin — financing widens your market without forcing you to discount.
Eligibility and documents a customer needs
The loan is for the residential consumer, so the customer applies — but you should pre-check their documents, because that is where applications stall. A customer typically needs:
- Identity & address proof — Aadhaar and PAN.
- Bank statements — usually the last 6 months.
- Income proof — salary slips or ITR, depending on the bank.
- Electricity bill — in the applicant's name, matching the connection.
- Registered PM Surya Ghar application and your vendor quote.
Where applications stall
The common blockers are income proof, a name mismatch across Aadhaar, PAN, the electricity bill and the bank account, and an incomplete portal application. Catch these before the customer walks into the branch and you save days of back-and-forth and keep the deal warm.
The cash-flow benefit to the EPC
This is the part EPCs underrate. In a loan-backed job the bank pays you directly, so you are paid on disbursement rather than waiting on a customer to assemble a lump sum — or worse, waiting on the subsidy, which never comes to you anyway. The customer's DBT subsidy lag is the bank's and the customer's problem, not yours.
Compare the two paths: a cash customer ties up your working capital until they pay in full; a financed customer gets you paid by the bank fast and shifts the subsidy-timing risk off your books. For an EPC running volume, financing is as much a cash-flow tool as a sales tool — see the margins & pricing guide on managing the DBT and DISCOM lag.
How SuryaHub helps you run financed jobs
Financing adds steps — upfront collection, bank disbursement, subsidy adjustment, repayment — that are easy to lose across 20+ jobs a month. SuryaHub's finance & GST module tracks each job's payment, financing and GST position in one view, and the job runs through to subsidy-claim tracking so the DBT that reduces the customer's loan actually lands. SuryaHub is pre-revenue; real pilots are Suryantra Energy and RGESPL, and every rate here is indicative, not a guarantee — verify with the bank.
Track every financed job
See how SuryaHub follows payment, financing and subsidy on each deal.
Related guides
Frequently asked questions
What is the PM Surya Ghar collateral-free loan?+
The PM Surya Ghar collateral-free loan is an unsecured loan of up to ₹2 lakh from participating PSU banks for residential rooftop solar. No physical collateral is needed — the solar system and the assignment of the subsidy act as security. Rates are indicative around 7% with tenures up to about 10 years; verify current terms with the bank.
What is the interest rate on a PM Surya Ghar loan?+
The interest rate on a PM Surya Ghar loan is indicative around 7%, with banks like SBI, Canara and Union Bank quoting in roughly a 6.5% to 7.15% band. Rates are linked to bank benchmarks and change, so treat any figure as indicative and confirm the current rate directly with the bank before quoting a customer.
How does the 10% upfront and 90% financed flow work?+
In a typical PM Surya Ghar loan flow, the customer pays about 10% upfront and the bank finances around 90%. The bank disburses the financed amount to the EPC’s account. The central subsidy is later adjusted against the loan when it is released, reducing the customer’s outstanding balance. Exact terms vary by bank.
Who does the bank pay in a PM Surya Ghar loan?+
The bank disburses the financed loan amount directly to the EPC’s (installer’s) account, which is a major cash-flow benefit because you are paid by the bank rather than waiting on the customer or the subsidy. The customer’s DBT subsidy is separately adjusted against their loan balance after commissioning.
What documents does a customer need for a PM Surya Ghar loan?+
A customer typically needs identity and address proof (Aadhaar, PAN), bank statements, income proof, the electricity bill, and the registered PM Surya Ghar application and vendor quote. Applications most often stall on income proof, name mismatches or an incomplete portal application, so check the documents before the customer goes to the bank.
How does offering a PM Surya Ghar loan help an EPC close more deals?+
Offering a loan lets the EPC present dual options — full payment or a low upfront with financing — so cost is no longer the blocker for a customer who cannot pay in full. Because the bank pays the installer directly, the EPC also gets paid faster. SuryaHub is pre-revenue; real pilots are Suryantra Energy and RGESPL.
Sources & references
The collateral-free structure, the ₹2 lakh limit and the subsidy-adjustment flow come from primary government sources. Interest rates and tenures are indicative and change — always verify current terms directly with the participating bank before quoting a customer.
- National Portal for PM Surya Ghar ↗
Official loan facility, the collateral-free structure and participating-bank links.
- Ministry of New & Renewable Energy (MNRE) ↗
Scheme guidelines covering the low-interest loan provision for residential rooftop solar.
- REC Limited ↗
Scheme implementation and lender coordination for PM Surya Ghar finance.
Written by the SuryaHub team · reviewed against MNRE & National Portal sources · updated 19 June 2026.
Method: The loan structure and limit are taken from the government sources above. Bank rates and tenures are indicative field figures that change — verify with the bank. SuryaHub is pre-revenue; only Suryantra Energy and RGESPL are real pilots.
Change log: 19 Jun 2026 — first published.