New Delhi, Oct 7 (NationPress) Public sector banks (PSBs) have approved over 5.79 lakh loan applications, totaling Rs 10,907 crore (as of September 2025), under the PM Surya Ghar Muft Bijli Yojana (PMSGMBY). This initiative significantly enhances financial assistance for beneficiaries aiming to install rooftop solar systems, as disclosed on Tuesday.

The program marks a key achievement in empowering households with clean and affordable solar energy.

Implementation of the PMSGMBY is bolstered by optimizing the credit delivery system, providing collateral-free loans at reduced interest rates, and simplifying financing through PSBs.

“Loans are processed via the JanSamarth Portal, which is integrated with the National Portal for PM Surya Ghar Muft Bijli Yojana (pmsuryaghar.gov.in), ensuring a seamless digital application experience, enhanced user interaction, and data-driven decisions for beneficiaries,” a statement from the Finance Ministry stated.

This model loan scheme offers essential benefits, including loans up to Rs 2 lakh with competitive interest rates, no collateral requirements, extended repayment tenures linked to electricity savings, a six-month moratorium post-disbursement, reduced margin contributions by applicants, and a digital sanction process based on self-declaration.

With robust engagement from PSBs, various improvements have been implemented to facilitate loan access and broaden the scheme's outreach.

“Significant enhancements in the loan scheme, such as allowing co-applicants to widen eligibility, eliminating capacity-based restrictions, and streamlining documentary needs based on user feedback, have been executed,” the ministry added.

The Department of Financial Services (DFS), in collaboration with the Ministry of New and Renewable Energy, continuously monitors loan progress within the scheme, fostering implementation through partnerships with State Level Bankers Committees and Lead District Managers. This approach promotes faster adoption and better penetration of the initiative.