J&K Bank partners with KPDCL to offer collateral-free loans for solar rooftops

SRINAGAR — In a big boost to the installation of solar rooftops under PM Surya Ghar: Muft Bijli Yojana, J&K’s premier financial institution, Jammu & Kashmir Bank, has joined hands with Kashmir Power Distribution Corporation Limited (KPDCL) to offer interested domestic consumers collateral-free and interest-friendly loan facility for RTS plants up to 10 kWp.

In a major decision taken, J&K Bank has issued the guidelines for bearing the full cost of RTS upfront under the MN&RE’s flagship scheme, which shall provide a much-needed fillip to the domestic consumers to adopt the scheme, which is 60% subsidised for plants up to 3 kWp.

In a press statement issued here today, a KPDCL spokesperson welcomed the bank’s decision to partner with Kashmir Discom in making PM Surya Ghar scheme a household name in the Kashmir Division. “All those consumers who have registered on the National Portal can now also apply on the Jan Samarth portal or visit the nearest J&K Bank branch to avail the loan facility,” he explained.

Giving details, the KPDCL spokesman further stated that the interested consumers registered on the National Portal of PM Surya Ghar can avail of loans at a minimal beneficiary contribution of 5% only, for a plant up to 3 kWp, at friendly interest rates.

“For RTS plants beyond 3 kWp and up to 10 kWp, margin money of 10% has to be deposited by the consumer for availing upfront loan from J&K Bank,” he added.

As many as 3253 domestic consumers have formally applied on the National Portal in Kashmir Division, with 1182 having selected vendors. Nearly 200 consumers have already installed solar rooftops under the scheme with an installed capacity of 748.07 kW.

The KPDCL spokesperson hoped that with J&K Bank joining hands with KPDCL, the number of consumers interested in adopting the rooftop solar scheme will substantially go up. “The Central and UT subsidy, with an upper ceiling of Rs. 94,800 under the scheme shall be adjusted against the loan availed by the consumer, immediately after the plant is commissioned,” he said, adding that the EMI shall be reconciled accordingly.

The spokesman further stated that many Nationalized Banks like SBI, PNB and Canara Bank, are also offering similar loan facilities to motivate the consumers to avail EMI-based loans to bear the cost of the solar rooftop equipment.