PM Surya Ghar Solar Loan 2026: 5.75% Interest, No Collateral
You do not need the full cost of a solar system in hand to put panels on your roof. Under PM Surya Ghar Muft Bijli Yojana, banks give collateral-free loans of up to ₹2 lakh for home systems up to 3 kW, at an interest rate that currently works out to about 5.75% per year. That is cheaper than home loans, far cheaper than car loans, and a fraction of personal-loan rates.
This guide explains how the loan works, what the big banks are offering in 2026, what the EMI actually looks like, and how to apply.
What the scheme guarantees you
The loan facility is built into PM Surya Ghar itself, so every participating public-sector bank follows the same basic frame:
| Feature | For systems up to 3 kW |
|---|---|
| Loan amount | Up to ₹2,00,000 |
| Interest rate | RBI repo rate + 0.5%, currently about 5.75% p.a. |
| Collateral | None. Only the solar equipment itself is hypothecated |
| Your contribution (margin) | At least 10% of the system cost |
| Tenure | Up to 10 years, including a moratorium of up to 6 months |
| Processing fee | Nil at public-sector banks |
| Prepayment penalty | None. Close the loan early at no charge |
Two details worth understanding. First, the rate is floating and tied to the RBI repo rate, so when RBI cuts rates your loan gets cheaper automatically. Second, the government subsidy (up to ₹85,800 in Uttarakhand, explained in our state-wise subsidy guide) is credited straight into the loan account, knocking down your principal within weeks of installation.
What the banks are offering in 2026
Rates below are for loans up to ₹2 lakh (up to 3 kW systems), as published by the banks:
| Bank | Interest rate | Notes |
|---|---|---|
| State Bank of India | 5.75% p.a. | Nil processing fee; no minimum credit score for loans up to ₹2 lakh |
| Bank of Baroda | 5.75% p.a. | Finances up to 90% of cost; nil fee |
| Indian Bank | 5.75% for its home-loan customers, 6.75% for others | Nil fee |
| Punjab National Bank | around 5.75% p.a. | Guarantee waived up to ₹2 lakh; confirm rate at branch |
| Canara, Central Bank, Union Bank, Bank of India | scheme products available | Rates not published online; ask the branch for the current repo-linked rate |
Private banks generally have no dedicated solar product, so they route you through personal loans at 10% and up. NBFC solar loans run around 12 to 13%. For most homeowners the public-sector scheme loan is clearly the best deal.
What the EMI looks like
Take a typical 3 kW home in Haridwar district. After the ₹85,800 subsidy, suppose ₹1.2 lakh of the cost goes on the loan. At 5.75% over 5 years, the EMI is roughly ₹2,300 per month. A 3 kW system typically saves around ₹2,000 to 2,400 on your monthly UPCL bill. In plain words: the EMI and the bill you stop paying roughly cancel out, and once the loan ends the electricity keeps coming for free. Run your own numbers in our savings calculator.
How to apply
- Register your rooftop application on the national portal, pmsuryaghar.gov.in.
- Apply for the loan on the government's JanSamarth portal (it pulls your PM Surya Ghar details automatically) or walk into a branch.
- Keep the paperwork ready: Aadhaar, your latest electricity bill, proof of roof ownership, and a savings account with the lending bank. For loans up to ₹2 lakh, banks ask for no income proof and PAN is optional.
Our customers do not have to figure any of this out alone. We prepare the portal application, the loan file and the UPCL net-metering papers as part of every installation.
Going bigger than 3 kW?
Loans exist for systems up to 10 kW too, up to ₹6 lakh, but on regular terms: about 7.9% interest and up, a 20% margin, a credit score around 650 to 680, and income proof. The sweet spot for most homes remains at or under 3 kW, where the subsidised loan terms apply.
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