Tata Power & SIDBI to jointly offer collateral-free finance to MSMEs for rooftop solar

New Delhi: Tata Power has announced its partnership with the Small Industries Development Bank of India (SIDBI) to offer an easy and affordable financing scheme for MSME customers in the rooftop solar segment. This scheme will empower MSMEs to adopt sustainable energy for their businesses and promote greener tomorrow, the company said in an official statement on Tuesday. Commenting on this partnership, Tata Power's Managing Director (MD) & CEO Praveer Sinha said, "Green Energy has gained momentum in the country in sectors like MSME. We are pleased to partner with SIDBI for an innovative financing solution for our MSMEs customers. This will support and encourage MSME customers to adopt solar energy with an affordable financing solution."

Tata Power, SIDBI to provide collateral-free loans at less than 10% interest

Easy and affordable financing has been one of the barriers holding back the penetration of solar in the MSME sector in the country. In order to address this challenge, Tata Power and SIDBI have joined hands to design a unique solar financing solution for MSME customers, helping them switch to rooftop solar without any collateral at an interest rate less than 10 percent. This will also be complemented with a quick sanction and disbursement process (within 7 days with disbursement in 4 days). This financing scheme is exclusively for MSME customers of Tata Power for both off-grid and on-grid connections.

ALSO READ: NHPC to implement 4 hydropower projects, develop RE projects in J&K

SIDBI's Deputy Managing Director (DMD) Manoj Mittal said, "Most MSMEs fail to attract developers due to smaller size or inadequate financial worthiness. There is a need to innovate and pay attention to these classes of consumers to activate the next leg of growth in the rooftop solar market. I am sure this scheme will help to address the need for financing for this segment. Partnering with Industry leader Tata Power Solar is certainly going to encourage the flow of credit for this national priority" 

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated)