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Friday, January 28, 2022

How Does a Solar Loan Work and Do You Need It?

It is not news that electricity prices have been skyrocketing for the past few years, owing to the rise in power consumption across all sectors of the economy, especially industrial and commercial. This has made electricity largely unaffordable for the common person, particularly during the summer season. As a result, homeowners have started looking for alternative power sources that are not as costly, which has resulted in the rapid installation of solar panel systems.

Not only is solar energy free of cost, but it is also a renewable power source that does not emit any harmful gases, chemicals, or pollutants, making it safe for the environment. However, since solar power systems are a considerable investment, many people require financial aid to purchase and install them. But what is the best way to seek monetary assistance for solar panel systems? The answer is a solar loan.

Wondering how a solar loan works and whether you need one? This guide is here to help, so keep reading!

Is It Possible to Avail a Solar Loan in India?

Yes, you can easily avail of a solar loan in India, all thanks to the availability of Easy Monthly Installments or Equated Monthly Installments, popularly known as EMIs. So, today, you can buy everything from smartphones and cars to houses and solar power systems on EMIs. This option is a great way to promote the adoption of clean and renewable energy sources in the country while making it easier for the larger population to afford solar panel systems.

Although it is fairly easy to get a solar loan from banks, customers also have the option of purchasing a solar power system with their debit card. However, the terms and conditions and eligibility for this option varies from one bank to another, so it is best to inquire about the details beforehand.

Even better, some banks and NBFCs provide the option of no-cost EMIs, meaning you don’t have to pay an interest charge on the monthly installments, making the investment even more pocket-friendly and affordable.

How Does a Solar Loan Work and Do You Need It
Image Courtesy: Luminous

How Does a Solar Loan Work?

A solar loan works the same way as all other loans, such as home and car loans. First, you need to visit a preferred bank to find out the eligibility criteria. Next, you need to inquire about the details and terms & conditions of the solar loan to see if availing one is viable for you. While the solar loan amount depends on the specifications of the solar power system you wish to install, banks and NBFCs offer flexible re-payment options.

For instance, some banks allow customers a time frame of up to 7 years to re-pay the solar loan; however, there is also the option of early re-payment if you wish to end the loan term early. In addition, solar loans are available to everyone, including salaried employees, self-employed individuals, and even businesses, which is an excellent added benefit.

Do You Need a Solar Loan?

While there is no right or wrong answer to this question, you can consider getting a solar loan if purchasing a solar power system is too big an investment. Additionally, you won’t have to bear the burden of paying the entire amount in one go, and you can choose the re-payment tenure as per your preference.

However, it is crucial to check if you meet the eligibility criteria, and you will also have to provide some official documents such as a passport-sized photograph, identification proof, address proof, salary statement, and more, depending on the bank’s requirements.

If you’re looking for solar loans and financing options for solar power systems, who better to turn to than trusted and reliable solar solution providers like Luminous? Luminous has been in India’s solar solution market for years, helping customers switch to solar power with ease. Moreover, Luminous offers solar solution packages that include assistance for financing options and solar loans, including all the paperwork and documentation.

Even better, Luminous has partnered with leading banks and NBFCs such as YES Bank, Metafin, and IDBI Bank that provide solar loans at attractive rates and terms. So, what are you waiting for? Visit Luminous’ website and explore their solar loan and finance options today!

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