Thinking of reducing your electricity bills and contributing to a greener tomorrow? The PM Surya Ghar Muft Bijli Yojana (PM-SGBMY) is a game-changer, offering subsidies for installing rooftop solar panels. But setting up solar can feel daunting. Worry not! Canara Bank, a leading public sector bank, offers loan schemes to make this switch smooth and affordable. Let’s delve into the nitty-gritty of Canara Bank’s solar loan options under PM-SGBMY.
Unveiling Canara Bank’s PM-SGBMY Loan Products
Canara Bank offers two loan products under PM-SGBMY, catering to different rooftop solar capacities:
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Canara Rooftop Solar (CRTS) – PM Surya Ghar Yojana (PMSGY) (Upto 3 kW): This loan is ideal for residential setups with a maximum capacity of 3 kilowatt (kW). It covers the cost of installing an on-grid solar system, where the excess energy generated feeds back into the power grid, earning you credits on your electricity bill.
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Housing-cum-Solar Loan (Upto 10 kW): This option is a two-in-one package. If you’re planning home renovation or construction that includes rooftop solar installation (on-grid only), this loan can finance both. The maximum capacity here is 10 kW, suitable for larger homes or those with higher electricity consumption.
Key Features and Benefits of Canara Bank’s Solar Loans
Here’s what makes Canara Bank’s solar loan schemes under PM-SGBMY attractive:
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Subsidy Advantage: The PM-SGBMY offers a subsidy to bring down the upfront cost of your solar system. The subsidy percentage depends on the capacity – 60% for up to 2 kW and 40% for the additional cost between 2 kW and 3 kW. Canara Bank seamlessly integrates the subsidy with your loan, reducing your borrowing amount.
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Financial Flexibility:
- CRTS-PMSGY offers a loan amount of up to Rs. 2 lakhs (including subsidy) with a repayment tenure of up to 10 years.
- The Housing-cum-Solar Loan provides a higher loan amount of up to Rs. 10 lakhs, with a longer repayment period of up to 20 years, making the EMIs more manageable.
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Competitive Interest Rates: Canara Bank offers competitive interest rates based on your creditworthiness. The rates are linked to the bank’s lending benchmark, ensuring transparency.
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Minimal Down Payment: Both loan options require a minimum down payment. CRTS-PMSGY requires a 10% contribution from your end, while the Housing-cum-Solar Loan might have a slightly higher down payment requirement depending on your loan amount.
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Simplified Process: Canara Bank streamlines the loan application process. You can approach your nearest branch for assistance and guidance. The bank also has an online portal for loan applications, making it convenient for tech-savvy individuals.
Going Solar with Canara Bank: A Step-by-Step Guide
Here’s a roadmap to navigate the process of availing a Canara Bank loan for your rooftop solar installation under PM-SGBMY:
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Do Your Research: Get quotes from reputable solar panel vendors and understand your electricity consumption patterns to determine the optimal capacity for your rooftop.
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Approach Canara Bank: Visit your nearest branch or access the online portal. Discuss your solar project requirements and loan options with a bank representative.
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Prepare Documents: Gather necessary documents like property ownership proof, identity proof, income proof, and project quotations from vendors.
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Loan Application and Approval: Submit your application form with the required documents. The bank will assess your eligibility and creditworthiness before sanctioning the loan.
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Loan Disbursement and Installation: Upon loan approval, Canara Bank will disburse the loan amount directly to the approved vendor after all loan documents are signed. The vendor will then handle the solar panel installation.
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Enjoy Savings and Green Benefits: Start generating your own clean energy, reducing your electricity bills, and contributing to a sustainable future!
Beyond the Loan: Additional Support from Canara Bank
Canara Bank goes beyond simply providing loans. They might offer additional benefits like:
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Technical Assistance: The bank might have tie-ups with empanelled vendors who can guide you through the technical aspects of solar panel selection and installation.
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Post-installation Support: The bank might offer guidance on claiming the government subsidy and navigating net metering processes with your electricity provider.
By leveraging Canara Bank’s loan schemes alongside the PM-SGBMY subsidy, you can make the switch to solar power a reality