Bank of Baroda: Get Solar Pump Set Loans Easily- Eligibility Criteria, Documents Required, & Interest Rate

In a commendable move towards sustainable agriculture, the Bank of Baroda introduces an exclusive loan scheme for the installation of Solar Photovoltaic Pump Sets. Tailored to support individuals, groups, and organizations committed to harnessing solar energy for water pumping, this initiative comes with a range of benefits and features designed to promote eco-friendly practices.

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Benefits:

* Nil Processing and Inspection Charges: Enjoy the ease of obtaining a loan up to Rs 3.00 Lakhs with zero processing charges and inspection fees.

* Low Margin Requirement: With a minimum margin of 20% of the total project outlay, this loan ensures affordability and accessibility for a wide range of borrowers.

* Extended Repayment Period: Experience financial flexibility with a repayment period of up to 10 years, allowing ample time to manage your investment effectively.

Features:

This loan is specifically crafted to facilitate the purchase of a comprehensive solar photovoltaic water pumping system. The components covered include PV arrays, motor pumping sets, interconnect cables, and essential electronics, ensuring a holistic approach to solar irrigation.

Eligibility Criteria:

Open to individuals, groups, SHGs, JLGs, NGOs, farmer clubs, and farmers' producer organizations, the eligibility criteria are inclusive, encouraging widespread participation in sustainable farming practices.

Also Read: Essential Points to Keep in Mind When Taking a Tractor Loan

Documents Required:

* KYC Documents: Aadhar, Voter ID, PAN Card, Driving License, etc.

* Passport Size Photo

* Quotation/Invoice for the solar photovoltaic pump set

* Land Records

* Project Report

* Income Tax Return

Fees & Charges:

Processing Charges:

* Aggregate Agriculture exposure up to Rs. 3.00 Lakhs: Nil

* For Term Loans above Rs. 3 Lakhs: 1% of the sanctioned limit, capped at Rs. 100 Lakhs.

Inspection Charges:

* Agriculture exposure up to Rs. 3.00 Lakhs: Nil

* Rs. 3 lakhs to Rs. 10 Lakhs: Rs. 250

* Rs. 10 Lakhs to Rs. 1 Crore: Rs. 1000

* Above Rs. 1 Crore: Rs. 5000

Most Important Terms & Conditions (MITC):

Nature of Facility: Term Loan

Margin: Minimum 20% of the total project outlay

Repayment Period: Maximum of 10 years

Also Read: Government Offering 75% Subsidy on Solar Pumps for Farmers: Benefits & Application Details

Security:

* Loan up to Rs. 1,00,000: Hypothecation of solar photovoltaic pumps

* Loan above Rs. 1,00,000 and up to Rs. 5,00,000: Hypothecation of solar photovoltaic pumps and Third-party guarantee

* Loan above Rs. 5,00,000: Mortgage of land

Rate of Interest:

* Up to Rs.3 Lakhs: One year MCLR+ SP

* Above Rs.3 Lakhs and less than Rs.25 Lakhs: One year MCLR+ SP+ 1.25%

Rs.25 Lakhs and above:

* Loan period less than 3 years: One year MCLR+ SP+ 2.00%

* 3 to 5 years: One year MCLR+ SP+ 2.10%

* Above 5 years and up to 7 years: One year MCLR+ SP +2.15%

This initiative not only supports sustainable farming practices but also aligns with the broader goal of promoting clean energy in the agricultural sector. Farmers and organizations embracing solar solutions can now access affordable financing options to enhance their irrigation systems and contribute to a greener future.

Also Read: Maximizing Crop Yields and Efficiency with Agri Solar Pump Systems