A recent press report said that Allahabad Bank has entered into an agreement with Tata BP Solar for the implementation of ‘capital subsidy cum refinance scheme for installation of solar off-grid (photo voltaic and thermal) and decentralization applications’ under the Jawaharlal Nehru National Solar Mission announced by the Ministry of New and Renewable Energy.
According to the agreement, Allahabad Bank will provide loans to farmers and rural artisans to install solar off-grid manufactured by Tata BP Solar India Limited.
Reports said that the various categories of borrowers such as farmers, agricultural laborers, rural artisans, professionals, entrepreneurs and salaried persons among others are eligible under the scheme. It added saying that the bank has planned to offer the loan at 5 per cent under the government’s capital subsidy-cum-refinance scheme for promotion of solar off-grid.
Reports also said that the borrowers will have to foot 20 per cent of the project cost as margin, and 30 per cent will be available as capital subsidy. The bank also has tie ups with Kirti Solar and Bhaskar Solar.