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TPREL and Bank of Baroda Sign MoU to Finance Rooftop Solar Projects Under PMSGMBY.

Banking & Finance | Dated: 10 Feb 2025

On February 6, 2025, Mumbai (Maharashtra)-based Tata Power Renewable Energy Limited (TPREL) signed a Memorandum of Understanding (MoU) with Vadodara (Gujarat)-based Bank of Baroda (BoB) to provide financial assistance for Residential Rooftop Solar Installations.

🎯 Key Highlights:

  • - This partnership aims to support the Prime Minister - Surya Ghar Muft Bijli Yojana (PMSGMBY), a government initiative targeting the installation of rooftop solar panels in 1 crore households by March 2027.
  • - Under the agreement, homeowners can avail loans of up to ₹6 lakh at interest rates starting from 7% per annum, with both fixed and floating rate options available.

💡 Other Important Facts:

  • (i) For solar systems up to 3 kilowatt (kW), homeowners can access loans up to ₹2 lakh without requiring income documentation.
  • (ii) The scheme mandates only a 10% margin contribution, with flexible repayment tenures of up to 10 years.
  • (iii) Installations between 3 kW and 10 kW qualify for loans up to ₹6 lakh, requiring a 20% margin contribution.

📚 Test Your Knowledge:

Which bank recently signed an MoU with Tata Power Renewable Energy Limited (TPREL) to finance residential rooftop solar installations under PMSGMBY?

Correct Answer: Bank of Baroda

🚀 Quick Recap: