Tata Power Renewable Energy Limited (TPREL), a subsidiary of Tata PowerCompany Limited, has signed a Memorandum of Understanding (MoU) with Bank ofBaroda to provide affordable financing options for installing solar systems onrooftops of residential buildings under the Pradhan Mantri Surya Ghar Yojana(PMSGY). This strategic partnership aims to accelerate the adoption of rooftopsolar systems across India.

This tie-up will provide easy and hassle-free financing solutions tohouseholds and will help in the country's transition to renewable energy. Underthis collaboration, applicants can avail loans up to INR 6.00-lakh, withattractive interest rates starting at 7.0 per cent per annum. Both fixed andfloating interest rates are available for this loan.

As part of the PM Surya Ghar scheme, customers who install solar powersystems with a capacity of up to 3.0 kW on the roof of their houses will beable to get a loan of up to INR 2.00-lakh without income documents. For thisscheme, only 10 per cent of the amount will have to be paid as your own contributionand interest will have to be paid at the rate of 7.0 per cent per annum on theloan.

The loan is unsecured and will have a repayment period of up to 10 years. Thiswill enable domestic consumers to install solar power systems at a reasonableprice.

For a large system of 3kW to 10kW capacity, customers can get a loan of upto INR 6.00-lakh under the regular scheme, for which customers will have to pay20 per cent of their own contribution. Bank of Baroda's home loan customerswill get a discounted interest rate i.e. 9.15-11 per cent per annum, while forother customers, the interest rate will be 10.15-12 per cent per year. Theseloans are also unsecured and will have a maximum repayment period of 10 years.