Allahabad Bank to offer loans to promote solar energy

Allahabad Bank which provides retail banking, corporate/wholesale banking, and treasury services in India and internationally has entered into a strategic partnership with the Environ Energy Corporation for promoting installation of solar power energy systems by financing customers of the latter's solar power solutions.

A memorandum of understanding was signed by the bank's general manager (Priority Sector Credit) B.K.Srivastav and Environ's assistant general manager (marketing) S.K.Chakraborty here.

The loan will be offered at 5% by the bank under the government's capital subsidy-cum-refinance scheme in order to promote the solar off-grid.

All individuals which include all categories of farmers, agricultural labourers, rural artisans, professionals, entrepreneurs, salaried persons, are eligible under the Scheme.

The borrowers who will get a Rs 500 rebate from the solar company are required to bring 20% of the cost of the project as margin. About 30% is available as capital subsidy.