Home You are here : path  Products path Personal path union solar

imageUnion Solar

S. No


Scheme Guidelines



To finance MSMEs/Business Enterprises on Pan India level towards setting up of Rooftop/Ground mounted Solar Units aimed at cost saving and increased use of renewable energy for existing business use (Captive consumption).



a. All business enterprises irrespective of constitution (Individual/Proprietorship/Partnership/Companies/Trust/Associatio n etc.) other than HUF.

b. Unit eligible to be classified as MSME shall have Udyam Registration Number as per the revised MSME definition.

c. Units should have in place all necessary statutory approvals / NOCs from respective authorities, as required.

d. CIC Score in case of Individual/Proprietary concerns shall be minimum 700.

e. Installation of Solar Unit to be grid connected and shall have the net metering arrangement/site feasibility approval from jurisdictional DISCOM/Chief Electrical Inspector to Government (CEIG)).

f. Savings in electricity cost post installation of renewable energy sources shall cover at least the monthly repayment obligation of the Term Loan availed for the same under the subject scheme.

g. Onsite projects as well as offsite projects are eligible to be financed under the scheme.

h. Property where the Solar Unit is proposed to be installed shall be under the ownership of the borrower or the borrower shall have the leasehold rights (including option of renewal) on the property covering the tenor of the loan.

i. Enterprises engaged in speculative activities are not eligible for finance under this scheme.

j. In case of existing borrowers, the account shall not be overdue or under SMA at the time of sanction.




Term Loan For purchase & installation of Rooftop/Ground mounted Solar units.


Limit/Quantum of the loan

Minimum: Above Rs 10 lakh

Maximum: Rs 16.00 Crore

(Solar units with minimum capacity of 10-20 kW and maximum capacity of 4 MW to be financed under the scheme)



The limit shall be arrived as the cost of assets to be created/procured less minimum margin on the cost of the equipment.




20%. In case of proposals with collateral coverage of more than 35%, minimum margin may be reduced to 15% by the respective sanctioning authority.


Repayment Period

Repayable in Equated Monthly Installments (EMIs) in maximum 10 years including moratorium of not exceeding 6 months.

However, in deserving cases on case-to-case basis with proper justification sanctioning authority may consider moratorium up to 12 months with maximum tenor of 10 years.



Primary: All the assets created out of TL


a) For amount up to Rs.8.00 Crore: No additional collateral shall be insisted in case of borrowers (existing / new) availing credit facilities with our Bank for their business and seeking Term Loans under the subject scheme duly obtaining negative lien on the existing securities

In case of exposure exceeding Rs.8.00 Crore under the scheme, the exposure exceeding Rs.8.00 Crore may be covered with Collateral of minimum 50 %. However, sanctioning authority may stipulate higher collateral coverage based on the credit profile of the borrower.

b) In case of New to Bank customer, NIL collateral coverage on case to case basis complying the criterion stipulated by the Bank. Else, the account may be covered under CGTMSE (charges to be borne by the borrower) with nil collateral and/or minimum of 25% of collateral to be offered for the exposure not covered under CGTSME. Borrower to avail minimum 10 % of working capital share from our bank.

For Exposure above Rs.8.00 Crore under the Scheme: Minimum 50 % collateral to be obtained. However, sanctioning authority may stipulate higher collateral coverage based on credit profile of the borrower.

For more details, please contact our nearest branch.