Bank Loans on Solar Panels: Interest Rates & EMI (2025–2026)
Compare rooftop solar loans from State Bank of India (SBI), Punjab National Bank (PNB), Canara Bank, Bank of Baroda, Union Bank, and Bajaj Finserv. Get 7.00% collateral-free financing on JanSamarth with 10% margin money and tenures up to 10 years.
Under the PM Surya Ghar Muft Bijli Yojana, Public Sector Banks (SBI, PNB, Canara Bank, Bank of Baroda, Union Bank) provide concessional green loans at 7.00% p.a. (pegged to Repo Rate + 0.50%) for systems up to 3 kW. Key terms include: 10% margin money, 10-year tenure, zero collateral, and zero processing fee. For systems >3 kW up to 10 kW, rates range from 7.65% to 7.90%. Alternatively, Bajaj Finserv and solar fintechs offer 0% down-payment loans with 2-hour digital sanction at 9.50%–12.50% p.a.
Solar Panel Loan Interest Rates: SBI, PNB, Canara Bank, BoB & Finserv
Side-by-side benchmark of leading Public Sector Banks and private fintech lenders under PM Surya Ghar.
| Bank / Institution | Rate (≤3 kW) | Rate (>3 kW) | Max Loan | Down Payment | Max Tenure | Processing Fee | Collateral | Application |
|---|---|---|---|---|---|---|---|---|
State Bank of India (SBI)★ Most Popular Public Bank | 7.00% p.a. | 7.75% p.a. | Up to ₹6,00,000 | 10% of Project Cost | 120 Months (10 Years) | Zero for systems ≤3 kW | Nil (100% Unsecured) | Apply |
Punjab National Bank (PNB)★ Fastest PSB Sanction | 7.00% p.a. | 7.75% p.a. | Up to ₹6,00,000 | 10% of Project Cost | 120 Months (10 Years) | Zero upfront & processing fees | Nil (Collateral-Free) | Apply |
Canara Bank★ Special Women Concession | 7.00% p.a. | 7.75% p.a. | Up to ₹6,00,000 | 10% of Project Cost | 120 Months (10 Years) | Nil for loans up to ₹2 Lakh | Nil for ≤3 kW | Apply |
Bank of Baroda (BoB)★ Higher Limit (₹10L) | 7.00% p.a. | 7.90% p.a. | Up to ₹10,00,000 | 10% of Project Cost | 120 Months (10 Years) | Zero for standard residential | Nil up to ₹6 Lakhs | Apply |
Union Bank of India | 7.00% p.a. | 7.65% p.a. | Up to ₹6,00,000 | 10% of Project Cost | 120 Months (10 Years) | Nil | Nil (Unsecured) | Apply |
Bajaj Finserv & Solar Fintechs★ 0% Down Payment | 9.50%–12.50% | 9.50%–12.50% | Up to ₹5,00,000 | 0% Down Payment | 12 to 60 Months | ₹999 flat | 100% Paperless & Collateral-Free | Apply |
Detailed Bank Loan Profiles & Application Paths
State Bank of India (SBI)
SBI Surya Ghar Solar Loan- Interest capped at RBI Repo Rate + 0.50% (~7.00% p.a.)
- Up to 6 months moratorium period before EMI starts
- Direct DBT subsidy adjustment option into loan principal
- Zero foreclosure and pre-payment penalties
Punjab National Bank (PNB)
PNB Surya Ghar Scheme- Finances up to 90% of benchmark turnkey cost
- Integrated with PNB One mobile app and JanSamarth portal
- Repayment calibrated to electricity bill savings
- Instant in-principle digital sanction with PAN/Aadhaar
Canara Bank
Canara Solar Rooftop Loan- Special green interest discount for women applicants
- Flexible EMI tenures from 3 to 10 years
- Disbursement directly to verified vendor escrow account
Bank of Baroda (BoB)
Baroda Solar Rooftop Scheme- Higher credit ceiling up to ₹10 Lakhs for large villas
- Pre-approved limits for existing Baroda Home Loan borrowers
- Zero penal interest on early subsidy clearance
Union Bank of India
Union Solar Rooftop Loan- Lowest rate for systems >3kW at 7.65% p.a.
- Simple 3-document paperless submission on JanSamarth
- Direct auto-debit tied with subsidy account
Bajaj Finserv & Solar Fintechs
Instant 0% Down-Payment Solar EMI- Zero down-payment option available
- Instant sanction in 2 hours via PAN & Aadhaar OTP
- Ideal for homeowners without JanSamarth bank eligibility
Why Solar Loans are "Zero Cost": Monthly EMI vs Bill Savings
Because a 3 kW solar system generates approximately 380 units of electricity each month, your power bill drops by ₹2,800 to ₹4,000 immediately. The 7.00% SBI solar loan EMI is only ₹1,842. The difference is pure cash in your pocket every month!
Documents Required for JanSamarth Solar Loan Approval
Keep these 5 documents ready for instant digital loan sanction within 24 to 48 hours:
Frequently Asked Questions: Bank Loans on Solar Panels
What is the interest rate for the SBI Surya Ghar Solar Loan?
Under the PM Surya Ghar scheme, State Bank of India (SBI) provides residential rooftop solar loans at a concessional interest rate of 7.00% per annum (Repo Rate + 0.50%) for systems up to 3 kW. For capacities above 3 kW up to 10 kW, the rate is 7.75% p.a.
Do I need to pledge collateral or mortgage my house for a solar rooftop loan?
No. For installations up to 3 kW (and up to ₹6 Lakhs across most public sector banks), solar loans are 100% collateral-free and unsecured. The hypothecation of the rooftop solar equipment itself serves as security.
How does the loan EMI compare to my monthly electricity bill savings?
In almost all cases, your monthly electricity savings are greater than your loan EMI! For a 3 kW system, the monthly EMI is approximately ₹1,842 (on a 7-year tenure @ 7.00%), while the monthly power bill savings range between ₹2,800 and ₹4,000. This means you experience net positive monthly cash flow from month one.
How do I apply for a solar panel loan on the JanSamarth Portal?
Visit jansamarth.in and select 'Renewable Energy Loan - PM Surya Ghar'. Fill in your basic identity details, select your preferred bank (SBI, PNB, Canara Bank, BoB), upload your electricity bill and vendor quotation, and receive an instant digital In-Principle Sanction Letter.
Can I adjust the ₹78,000 government subsidy directly to reduce my loan principal?
Yes. Leading banks allow you to deposit the ₹78,000 DBT subsidy directly into your loan account upon receipt from the government, which reduces your outstanding principal and shortens your EMI tenure without any prepayment penalty.
Calculate Your Solar Loan EMI & Net Monthly Savings
Use our interactive solar calculator to simulate your exact loan repayment schedule across SBI, PNB, Canara Bank, and Finserv.