The Government is making efforts for availability of easy financing to renewable energy generating companies. Reserve Bank of India has included bank loans up to a limit of ₹30 crore to borrowers for purposes like solar based power generators, biomass-based power generators, wind mills, micro-hydel plants and for renewable energy based public utilities, viz., street lighting systems and remote village electrification etc. under Priority Sector Lending classification. For individual households, the loan limit of ₹10 lakh per borrower is covered under the Guidelines. However, actual terms and conditions of the loans, including requirement of collateral security, vary among different banks/financial institutions (FIs) based on factors such as exposure of banks/FIs to the sector, credit worthiness of the borrower, risk perception, etc.
This information was given by R.K Singh, Union Minister for Power and New and Renewable Energy in a written reply in Rajya Sabha today.
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