New Delhi, Apr 22 (KNN) Luminous Power Technologies has signed a memorandum of understanding (MoU) with Small Industries Development Bank of India (SIDBI) to enhance access to affordable solar financing for micro, small and medium enterprises (MSMEs) across the country.
The collaboration aims to simplify financing for solar energy adoption by MSMEs through structured loan offerings, with funding of up to Rs 50 crore and repayment tenures extending up to 10 years.
Subsidised loans and faster approvals
Under the arrangement, eligible MSMEs can avail loans of up to Rs 2 crore with an interest subsidy of up to 2 percent, reducing effective interest rates to as low as 6.7 percent, reported The Economic Times.
The process will be largely digital, with minimal documentation and quicker turnaround times, enabling loan approvals within seven days, according to the companies.
The financing model allows up to 100 percent project funding, backed by cash collateral in the form of SIDBI Fixed Deposit Receipts. Interest rates will remain concessional and linked to the borrower’s credit profile.
Boost to solar adoption among MSMEs
The initiative is designed to address capital constraints faced by MSMEs and improve last-mile access to financing, thereby accelerating the adoption of solar energy solutions.
While Luminous will provide end-to-end support, including installation, project management and after-sales services through its network of over 350 service centres, SIDBI will offer tailored institutional financing support.
The partnership is expected to contribute to India’s clean energy transition by enabling MSMEs to shift towards renewable energy sources, improving operational efficiency and sustainability.
(KNN Bureau)
2012-01-26
