Rates of Interest under the Interest Subsidy Scheme for

Solar Water Heaters through IREDA/Banks other Financial Institutions

1.  Eligible  Systems

Solar Water Heaters with both Flat Plate or Evacuated Tubular Collectors (of any size)

2.  Borrowers

Any end user

3.  Agencies lending loans

Loans will be available from Indian Renewable Energy Development Agency (IREDA), public/ private sector banks, scheduled cooperative banks, RBI approved non-banking financing companies, intermediaries of IREDA (manufacturers/suppliers) and other public/private financing institutions (FIs). The scheme will be implemented through IREDA and other financial institutions/banks with release of funds to be managed by IREDA on behalf of MNRE

4.  Loan amount

Upto 85% of the cost of the project as apprised by IREDA/Bank/FI

5.  Duration of loan

Maximum Five years

6.  Rate of interest

2% to domestic users

3% to institutional users not availing accelerated depreciation

5% to industrial/commercial users availing depreciation

7.  Service charges to FIs/ Banks/ Intermediaries of IREDA and Incentive to motivators

@ Rs. 200/- to FIs /banks/intermediaries of IREDA on subsidy disbursed against each loan

@ Rs. 100/- per sq. m of collector area to motivators/agents of FIs/banks/IREDA and its intermediaries against disbursement of interest subsidy for attracting potential buyers of solar water heaters