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SBI offers solar loans from Rs 25,000 to Rs 10 lakh for farmers to set up solar pumps!
- •State Bank of India provides agricultural term loans ranging from Rs 25,000 to Rs 10 lakh to help farmers install solar irrigation systems under the PM-KUSUM scheme.
- •The scheme aims to reduce diesel usage in agriculture, promote renewable energy, and increase farmers' income through surplus solar electricity generation.
- •Eligible farmers receive central and state government subsidies, alongside bank financing and their own small contribution to cover installation costs.
- •Farmers can benefit from off-grid standalone solar water pumps under Component B and grid-connected solarization under Component C.
- •The loan comes with a repayment period of up to 120 months including moratorium, and farmers can earn extra income by selling surplus power to DISCOMs.
Key Questions Answered
State Bank of India offers agricultural term loans ranging from a minimum of Rs 25,000 to a maximum of Rs 10 lakh to eligible farmers for setting up solar irrigation systems. The interest rate is set at 350 basis points above the one-year MCLR, with a maximum repayment period of 120 months including the moratorium period.
The central government provides financial assistance of up to 30 percent based on the lower of the benchmark or tender price. For eligible farmers in northeastern states, certain hilly states, union territories, and island regions, this financial assistance is increased up to 50 percent.
Applicants must be individual or jointly borrowing landowners farming on their own land, with priority given to micro-irrigation users. Required documents include an application form, two passport-sized photographs, valid identity proof like an Aadhaar or voter ID card, address proof, revenue-department-attested land ownership documents, and details of cultivated crops and land area.
