Multiple banks. Different interest rates. Call it a "conflict of interest".
Bank of Maharashtra was founded on 16th September, 1935 in Pune. It now has over 1890 branches across India and caters to 15 million customers in the nation. The bank offers products and services on consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, private equity, savings, securities, asset management, wealth management, credit cards and others.
Under the Jawaharlal Nehru National Solar Mission (JNNSM), a Scheme for Solar Lighting Systems and Small Capacity Photovoltaic System is operational. The loan provided by Bank of Maharashtra can be used to account for expenses in the installation of solar lighting systems. The idea is to help promote the use of renewable energy practices.
The following can be mentioned as the salient features of the bank’s loan –
| Loan Purpose | Installation of solar photovoltaic system for lighting and/or other uses |
| Loan Amount | Lesser of 80% of cost approved by the MNRE or actual cost of unit, subject to models approved by the MNRE and with capacities ranging from 10wp to 200wp |
| Loan Margin | 20% of cost borne by the applicant |
| Subsidy on cost | Lesser of 40% of approved benchmarked cost or actual cost of the unit |
| Repayment Term | 3 years to 5 years. No prepayment or settlement allowed within 3 years |
| Security Collateral | Up to a loan amount < INR 250000 – Hypothecation of unit Loan amount >= INR 25000 – Hypothecation of unit and acceptable guarantor and/or paper security to the extent of the loan amount |
Solar Lighting Scheme Loan from Bank of Maharashtra has a fixed interest rate that is applicable for all age groups and customers irrespective of any conditions. The interest rate is fixed at base rate of the bank with an additional 4%. As of November 2015, the interest rate on this particular loan is fixed at 14.25% per annum.
Subject to further base rate changes or changes in the loan rate itself, these figures can change.
Bank of Maharashtra Solar Lighting Scheme Loan can be offered to all the customers of the bank who can furnish proof of income ensuring their repayment capacity. Such proof should be appealing to the sanctioning authority. Limited companies and/or corporates are not considered eligible for this loan.
Knowing an EMI amount that will help in clearing out a loan within a set period always helps in managing finances. Since this loan cannot be closed before three years are over, one should ideally plan an EMI amount that preferably ends the loan as early as possible, i.e. at the end of the 3rd year of the loan. BankBazaar offers EMI calculators, wherein loan amount, loan tenure and interest rates need to be filled in, to generate the EMI amount for repayment.
Based on the capacity to pay off the loan EMI, one can choose the tenure that is most appealing. BankBazaar will give you a breakup of the loan, amortization, repayment details, interest and principal components.
All customers of the bank with sufficient income proof to ensure repayment capacity, excepting limited companies and/or corporates.
The maximum loan amount offered 80% of the benchmark or actual cost of unit, whichever is lesser.
Bank of Maharashtra Solar Lighting Scheme Loan interest rate is fixed at 14.25% per annum.
The repayment term for the loan is 36 months to 60 months.
Pre-closure of loan before 36 months is not allowed.
A GST rate of 18% will be applicable on banking services and products from 01 July, 2017.
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