Overview of specialized loans in India
Specialized loans fund assets that cut energy cost or generate clean power. For a household that usually means a rooftop solar plant of 2 to 5 kW, where central subsidy under PM Surya Ghar can lower the net cost. For a farmer it may mean a solar pump under PM-KUSUM. For a business it may mean a captive solar plant, a biogas unit or efficient machinery.
These products differ sharply in size and assessment. Small residential solar loans are often decided on your credit profile and may carry little or no collateral. Larger renewable energy loans are assessed on the project's cash flows, the buyer of the power and the security offered. Subsidies usually arrive after installation, so plan how you will fund the gap, and check current rules on the official portals before you commit.
Types of specialized loans
| Loan | Security | In brief |
|---|---|---|
| Solar Loan | Secured or unsecured | A solar loan finances the purchase and installation of a solar power system, most often a rooftop plant for a home, shop or small unit. |
| Green Loan | Secured or unsecured | A green loan is finance for projects that save energy, cut emissions or conserve resources, such as rooftop solar, efficient cooling, electric mobility, rainwater harvesting or waste-to-energy units. |
| Renewable Energy Loan | Secured or unsecured | A renewable energy loan finances solar, wind, biomass, biogas or small hydro assets, usually as a project-style facility of ₹10 lakh to several crore, repaid over 5 to 15 years from the plant's output or savings. |
EMI calculators for specialized loans
Each calculator is set up for how that loan is really repaid, with typical rates, a repayment schedule and the fees that change the true cost.
How to choose between specialized loans
- Start with the subsidy. Check official portals for schemes such as PM Surya Ghar for homes or PM-KUSUM for farms. Eligibility, vendor lists and timelines decide how much you need to borrow.
- Size the project to your usage. Use 12 months of bills to size a solar plant. A system larger than your usage may earn little from export credit and raises the loan for no gain.
- Compare rates with a standard loan. A green label is not always cheaper. Compare the annual percentage rate, processing fee and GST with a personal or home improvement loan.
- Test repayment against realistic savings. Compare the monthly instalment with likely bill savings or revenue, using conservative output. Include maintenance and insurance costs in your calculation.
- Check the installer and security. Choose a credible, listed vendor with warranties and service. Understand what security the lender needs, such as hypothecation of the plant or property.
Estimate your EMI
Example values only. Replace them with the figures in your own offer.
Reducing-balance method. Excludes processing fees, GST, insurance and other charges.
Specialized Loans: frequently asked questions
What is the difference between a solar loan and a green loan?
A solar loan finances a solar power system and may link to a subsidy and net metering. A green loan is a broader label for energy-saving and eco-friendly purchases, such as efficient equipment or electric vehicles. Eligibility and pricing for green loans vary more by lender.
How much subsidy is available for rooftop solar?
Under PM Surya Ghar, eligible residential consumers can get central financial assistance up to ₹78,000 for systems of 3 kW and above, and a lower amount for smaller systems. You apply on the national portal through a listed vendor. Check the official portal for current rules.
Is the solar subsidy paid before installation?
No. It is credited to your bank account after the plant is installed, inspected and commissioned. This means the full cost is funded first, by you or by a loan, so ask a lender whether it can finance the gap until the subsidy arrives.
Can farmers get finance for solar pumps?
Yes. PM-KUSUM supports solar pumps and solarisation of irrigation with central assistance, a state share and the farmer's contribution. Banks and agricultural lenders may finance the farmer's share. Rules, components and timelines depend on the state, so check with your state nodal agency.
Do specialized loans need collateral?
Small residential solar and green loans are often unsecured and based on your credit profile. Larger renewable energy loans usually need hypothecation of the plant and may need property or guarantees. Requirements depend on the amount and the lender's assessment.
How do I know if a solar or green loan is worth it?
Estimate monthly savings from your bills and the equipment's rated output, then compare with the instalment, maintenance and insurance. If savings cover most of the instalment and the rate is competitive, it is sound. Be careful with vendor claims that cannot be checked.
Explore other loan categories
Official sources and further reading
These guides are written from Reserve Bank of India rules and official scheme pages. Rules, rates and scheme terms change, so check the current position on these sites and in your lender's Key Fact Statement before you apply.
- Government announcement: PM Surya Ghar Muft Bijli Yojana. The rooftop solar scheme announcement from the Prime Minister's Office.
- RBI: Key Facts Statement (KFS) for loans and advances. The Reserve Bank of India notification that tells lenders to give every borrower a plain-language statement of the full cost of a loan.
- RBI Complaint Management System. Where to take a complaint against a bank, NBFC or other regulated lender if the lender does not resolve it.
- RBI (Pre-payment Charges on Loans) Directions, 2025. Bars pre-payment charges on floating-rate loans taken by individuals for non-business purposes, for loans sanctioned or renewed from 1 January 2026.
- Reserve Bank - Integrated Ombudsman Scheme, 2021. The single complaint scheme for customers of banks, NBFCs and other RBI-regulated lenders.
- RBI: Free Annual Credit Report to Individuals. Credit bureaus must give you one free full credit report with score every calendar year.
- RBI Financial Education. Consumer guidance from the Reserve Bank of India on borrowing, fraud and your rights as a customer.
Edited by Hemant Kumar. Rates on this site are indicative ranges, not offers.
General information only. Rates and terms are indicative and vary by lender and applicant.