# Solar Loan & EMI Guide for Indore Homes

> How PM Surya Ghar collateral-free solar loans work, typical interest rates and EMIs for 3 kW and 5 kW systems, documents needed, and whether a loan or cash is better.

Canonical: https://geniussolarservices.com/learn/solar-loan-emi-guide

Under PM Surya Ghar, public-sector banks offer collateral-free loans for residential rooftop solar up to 3 kW at concessional interest of around 7% a year, with longer tenures available. Systems above 3 kW can be financed with regular solar or personal loans at higher rates. For a 3 kW system priced around ₹1.89 lakh, an EMI at 7% is roughly ₹3,742 over 5 years or ₹2,194 over 10 years, against estimated savings of about ₹2,736 a month. The subsidy is credited to your account after commissioning and can be used to prepay the loan.

- **≤3 kW loan rate:** ≈7% p.a.
- **Collateral:** Not required (≤3 kW scheme)
- **3 kW EMI (10 yr):** ≈₹2,194
- **3 kW savings:** ≈₹2,736/mo


## How the scheme loan works

1. Register on the PM Surya Ghar portal and choose a registered vendor.
2. Apply for a loan through the portal or directly with a participating public-sector bank.
3. The bank disburses to the vendor as per its process.
4. After installation, inspection and net metering, the **subsidy is credited to your bank account** — you can use it to prepay part of the loan.

Rates and terms are set by the bank and can change; we'll help you compare offers at the time you apply.

## Example EMIs

| System | Assumed price | Rate | Tenure | Approx. EMI | Est. monthly savings |
|---|---|---|---|---|---|
| 3 kW | ₹1.89 lakh | 7% | 5 years | ₹3,742 | ₹2,736 |
| 3 kW | ₹1.89 lakh | 7% | 7 years | ₹2,853 | ₹2,736 |
| 3 kW | ₹1.89 lakh | 7% | 10 years | ₹2,194 | ₹2,736 |
| 5 kW | ₹3.15 lakh | 9.5% | 7 years | ₹5,148 | ₹4,559 |

EMIs are calculated on the full system price before subsidy; prepaying the subsidy when it arrives reduces the remaining EMI or tenure.

## Loan or cash?

- **Cash** gives the highest lifetime return — no interest.
- **Loan** makes sense when the EMI is close to or below your monthly savings, so solar pays for itself from month one.
- Keep an emergency fund; don't drain savings for solar when a 7% loan is available.

## Documents usually needed

- Aadhaar and PAN of the applicant
- Latest electricity bill (connection in applicant's name)
- Property ownership proof or tax receipt
- Bank statements / income proof as the bank requires
- Quotation or proforma invoice from the vendor

## Businesses

Commercial and industrial solar is financed through term loans or equipment finance. Profitable businesses may also benefit from accelerated depreciation on solar assets — ask your CA. See [commercial solar in Indore](/commercial-solar-indore).


Updated: 2026-09-29

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**Genius Solar Services** · G-1, Swarna Palace, Plot No. 1108, Scheme No. 114, Part 1, Vijay Nagar, Near MP Gramin Bank, Indore, Madhya Pradesh 452010 · Phone +91 98267 12299, +91 78288 12299, 0731 400 4499 · geniussolarservices@gmail.com · Mon – Sat · 10:00 am – 7:00 pm
Source: https://geniussolarservices.com