Today, in view of the huge power shortage in the entire country, the demand for the solar system has increased significantly. To keep up with this soaring demand, many banks have started the facility of giving solar loans to the people. This has made it easy and hassle-free to install solar systems in your home. Annapurna Finance Pvt. Ltd. is one such trusted company providing a solar loan facility. Let’s find out some special features of AFPL and its services
What is Annapurna Finance Private Limited?
Annapurna Finance Private Limited’s’ headquarters is situated in Bhubaneswar, Odisha. This company provides loan facilities to the small entrepreneurs of the country to make it easier for them to operate with ease and give them the necessary financial backing they need. The company was started in 2009 and is currently one of the top 10 companies in the country in the NBFC-MFIs sector.
This company has now started the facility of giving solar loans.
What Are The Features & Benefits of Solar Loan?
With a solar loan, it becomes very easy for you to buy a solar system in your home. To install a solar system you may incur a cost of around 60 thousand to 1 lakh per kilowatt. This might be a huge investment for some. In instances like these getting a solar loan makes it easier for people to go ahead with the entire process.
|Features & Attributes||Insights|
|Product Name||Solar Rooftop Loan (MSME Customers)|
Secured - INR 2lacs to INR 25 lakhs
Unsecured - INR 1lacks to INR 10 lacs
|Security and Collateral||
Security - hypothecation of rooftop solar system
Collateral for Secured loans: Self occupied residential or commercial property, loan to value ratio (40% to 70%) - subject to AFPL credit conditions
|Margin Requirement||20-25% depending on customer profile|
|Insurance and AMC||Mandatory for loan period|
|Other conditions||RTS system should use approved list of modules and manufacturers only All Other Condition as per MSME Product Policy|
|Tenure||Maximum 7 years|
|Interest rate||10% - 12% (Flat)|
|Processing Fee||2% of Loan amount + GST|
By installing a solar system in your house today, apart from getting relief from the electricity bill coming every month, it also ensures uninterrupted facility of electricity. Especially if you run a business, it will help you to take your business next level by providing uninterrupted, feasible energy option.
What is the scope of MSME's?
Today there are more than 63 million MSMEs in India, which are considered to be the backbone of the Indian economy. This sector contributes about 30 percent to the country's Gross Domestic Product (GDP) and it provides a better means of livelihood to more than 11 crore people.
Today, about 51 percent of MSMEs in the country are in rural areas, where more than half of the country's population resides. In this sector, a business of 1crore 5 crore is considered as a micro industry, a company with a turnover of 50 crores is considered a small industry, and a company with a turnover of 250 crores is considered a medium industry.
How will the business benefit?
According to the data, today between 25 percent to 40 percent of MSME's expenditure comes on electricity. This is barring raw material cost. From this, it can be understood that if a business uses a solar system to meet its electricity needs, it will promise them better return on investment and will significantly cut down its cost increasing its profitability margin. This shall also help them contribute towards curbing global warming and increase their ESG ranking.
Taking note of these relevant issues, Annapurna Finance Pvt. Ltd. has started the facility of Solar Loan.
Eligibility Criteria and Documents Required
If you are from a state like Odisha, Bihar, or Tamil Nadu you can easily avail the services of AFPL. To avail this loan, you will need documents like your business details, PAN card, GST, bank account number, etc.
However, this bank has not yet clarified whether this loan facility will be available for On Grid Solar System or Off Grid Solar System. However, today most of the banks offer loans for On Grid Solar System.
Income Tax Benefits on Solar Loans Taken to Install Rooftop Solar
If you take a solar loan, you also get a tax exemption of up to 40 per cent in the first year while filing your GST and you can easily avail it for the next 3 years.
What are Secured Loan vs Unsecured Loan?
If you want to take a secured loan from the bank, then you have to show the property like your house, land or car etc. as security. On the other hand, you do not need any security for an unsecured loan. This is the reason why the interest rate is higher for unsecured loans.
How much is the interest rate of the AFPL Solar loan?
If you take a solar loan from this bank, then you will get an interest rate of 10 to 12 percent.
How to Calculate Solar Loan EMI?
Bank will provide you details for this upon reaching out for loans. EMI depends on how much loan you have taken and for how long you have taken it. You can use many online tools for this. Calculate monthly installment here.
हिंदी में पढ़ें: ऐसे उठाएं AFPL Solar Loan, बिजनेस की राह होगी आसान