andhrabank.in Solar Off-Grid & Refinance Scheme : Andhra Bank

Organization : Andhra Bank
Service Name : Solar Off-Grid & Refinance Scheme
Applicable State/UT: All India

Solar Off-Grid & Refinance Scheme : http://www.andhrabank.in/English/SolarOffGrid.aspx
Website : http://www.andhrabank.in/English/Home.aspx

Solar Off-Grid And Refinance Scheme :

** This is a scheme of The Ministry of New and Renewable Energy (MNRE) Government of India, New Delhi for promoting commercial marketing of solar energy systems and devices in the country.

Related : Andhra Bank AB Kisan Green Card : www.statusin.in/20747.html

** This scheme is being implemented as soft loan scheme for off –grid applications of solar energy (Both Photovoltaic & Thermal) under capital subsidy.

Models eligible for Loaning:
** MNRE finalized 11 model projects in consultation with IREDA and NABARD.
** Projects that are not specified by the MNRE, to be eligible for funding need prior approval from the PAC of MNRE.
** Applicable to Flat plate and evacuated Tube collector based solar water heating systems manufactured/installed by the BIS approved manufacturers subjected to fulfillment of terms and conditions.

Implementation period :
The scheme will be in operation up to 31.03.2013 and continuation of scheme shall be informed from time to time.

Loan Amount:
Bank loan is 50%, subsidy 30%,and margin 20%.

Eligibility :
** Employees of Central /state Government, public sector undertakings.
** Salaried employees with confirmed service of 5 years and take home monthly salary of not less than Rs. 2000/- after meeting the proposed loan installment.
** Professional and self employed persons with Annual net income of Rs. 60000/- as evidenced by Income tax return or chartered Accountants certificate and supported by satisfactory P&C from their Bankers.
** In addition to the above, any individual, Institution, non commercial organization or commercial organizations including Hostels, company Townships, Hostels and colleges etc. are also eligible for finance

Note: End users (other then individuals) have to give an undertaking that no depreciation allowance will be claimed under Income Tax rules)

Rate of Interest and Lock in period of Bank loan :
** Rate of interest is @ 5% p.a. on residual project cost.(project cost minus capital subsidy and borrowers margin)
** The loan repayment period would have minimum lock in period of 3 years from the date of disbursement of the first installment of the loan.

Release of Capital Subsidy:
AThe capital subsidy component would be released to the suppliers on behalf of the borrower by the financing bank only after satisfactory installation and commissioning of the system.

Repayment :
** Maximum period of 5 years
** Processing and other service charges
** To be levied as applicable to consumer durable Loans.

Penal rate of interest:
@ 2% over and above the stipulated interest rate for defaulted loans for the defaulted installments /amount**

Security norms:
** Hypothecation of assets created out of bank finance.
** Suitable guarantor/ co obligation good for the loan amount.
** No collateral security up to the credit limits of Rs. 50,000/-
** If the credit limits exceeding Rs.50, 000/- adequate approved securities as collateral are to be obtained.

Insurance :
The unit should be insured for full value and for all possible risks.