In a significant step towards enabling wider adoption of solar energy amongst MSMEs in the country, Luminous Power Technologies, India’s leading consumer energy fulfilment company, has signed a memorandum of understanding (MoU) with the Small Industries Development Bank of India (SIDBI) to expand faster access to structured, affordable financing for MSMEs, supporting their green energy transition.
Luminous will use SIDBI’s strong institutional framework and long-standing focus on MSME financing to make it easier for businesses all over India to get solar loans. MSMEs will be able to get loans of up to ₹50 crore as part of the partnership. They will have flexible repayment terms of up to 10 years. The offer includes an interest subsidy of up to 2% on eligible loans (up to ₹2 crore), which lowers the effective interest rate to 6.7%. This makes it one of the most competitive financing options on the market. There are very few documents needed for the process, it is all done online, and loans can be approved in as little as seven days.
The partnership also makes it possible to get up to 100% of the project’s funding, backed by cash collateral in the form of SIDBI Fixed Deposit Receipts (FDRs) and lower interest rates based on the customer’s credit rating. These features collectively aim to ease capital constraints for MSMEs and accelerate decision-making for solar investments.
The partnership is meant to make it easier for people to get low-cost loans with faster approvals, which is a big reason why more people are using solar energy. Luminous has a presence all over India, and SIDBI has programs specifically for small and medium-sized businesses. The partnership is expected to make things run more smoothly on the ground by making it easier to get financing at the last mile, which will lead to more businesses using it. This partnership with SIDBI further reinforces Luminous’ commitment to democratising access to clean energy and enabling India’s MSME sector to play a pivotal role in the country’s sustainable growth journey.
Luminous makes the whole solar journey easier for its customers by providing a complete solar ecosystem that includes making products, installing them, managing digital projects, and helping customers after they buy them. The company has over 350 service centers across India and responds to customer enquiries within 24 hours. There are also many ways for customers to get in touch, which ensures that the experience is smooth and reliable.
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