The Government of India has set an ambitious target of installation of Grid Connected Rooftop Solar Photovoltaic (GC-RSPV) projects with capacity aggregating 40 GW out of total incremental target of 175 GW of Renewable Energy capacity by 2022. With a view to giving a fillip to this segment, SBI has availed a line of credit from World Bank specifically, for financing GC-RSPV projects across the country through its identified branches (refer Annexure I). A Customized financial product has been developed by SBI and benchmark parameters for the purpose drawn up.

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Refer the SBI Loan document terms and conditions here


Terms and Conditions

Eligibility Criteria

Sole Proprietorship, Partnership Firm/ including LLP and Company/ Special Purpose Vehicle (SPV)/ NBFC Borrower or their parent company/ sponsor should have:

(i) at least 1 year experience/ past track record in power sector, and

(ii) CRA rating of SB-10 & better and/or ECR of Investment grade

Loan AmountUpto 75% of project cost.

Six months Marginal Cost of Funds Based Lending Rate (MCLR) plus spread in the range of 120 bps to 190 bps based on risk rating of the customer

Loans extended to MSMEs will be linked to external benchmark rate as per Bank’s extant guidelines plus spread in the range of 120 bps to 190 bps based on risk rating of the customer

DSCRAvg Gross DSCR at P90 : 1.20

6.2:1 for initial 3 years.

Below 6 from 4th year onwards

MoratoriumUp to 12 months post Date of Commencement of Commercial Operations (DCCO).
Collateral SecurityThe Bank may seek additional security (Collateral) if FACR falls below 1.10
DSRAMinimum Level :Equivalent to 6 months principal and interest.

What is Loan Repayment Period and Interest Rate? 

The interest rate for the loan will be an additional interest rate ranging from 0.12 per cent to 0.19 per cent depending on the risk rating of the SBI’s 6-month MCLR plus customer. Loans given to MSMEs will be linked with external benchmark rate. Up to 15 years will be given to repay the loan. Moratorium period is 12 months from the date of commencement of commercial operations. 

Who Can Take a Loan for Rooftop Solar PV Program? 

Any person can apply as a sole proprietor, with a loan from Partnership Firm / Incorporating LLP and Company / Special Purpose Vehicle / NBFC Borrowers or their parent company / sponsor SBI for installation of Rooftop Solar System. For this, the interested person should have at least 1 year experience or past track record in the power sector. He should have a CRA rating of SB-10 and above, as well as an investment grade ECR. 

Primary and Collateral Security 

Exclusive first charge on all fixed assets, movable assets, current assets, lease hold rights, cash flow, project related accounts and their rights etc. will have to be handed over to the bank. The assignment of the project document will also be with the bank as security. If the customer’s FACR is below 1.25, then SBI can ask for collateral security. 

Important Documents for SBI-World Bank Rooftop Solar PV Program 

  • ID or address proof of applicant and guarantor like- Voter ID, PAN number, Aadhaar number etc.

  • Income tax returns, wealth tax returns for the last 3 financial years of the applicant and guarantor.

  • The annual report of the business of the applicant and its associates for the last three years, containing an audited balance sheet and trading and profit or loss accounts.

If the applicant is a company, then its Memorandum and Articles of Association, Certificate of Commencement of Business. Sales tax returns of last three years, copy of detailed project report, projected balance sheet, profit and loss account, cash flow statement, copy of resource study, etc. will also be incurred. 

How will the Guarantee be Given? 

If a person / partnership firm / company applies for a loan for rooftop solar power production, then personal guarantees of proprietors / partners / directors will be sought. Corporate loan guarantee of the sponsor will be required for taking loans from Special Purpose Vehicles / Associates / Subsidiaries.