Target Group:

• Individual farmers, group of farmers, cooperatives, panchayats, Farmer Producer Organizations (FPO), Water User Associations (WUA), Sole Proprietor & Partnership Firm etc.

Objective:

• Under PM Kusum Yojana, farmers, group of farmers, panchayat, co-operative societies can apply to install a solar pump. The total cost involved in this scheme is divided into three categories in which the Government will help farmers. Government will provide a subsidy of 60% to farmers and 30% of the cost will be given by Bank in the form of loans. Farmers will only have to give 10% of the total cost of the project. The electricity generated from the solar panel can be sold by farmers for monetary benefits. This electricity can also be used for other purposes and businesses.

Type Of Facility:

• Term Loan.

Margin:

• Minimum 10%.

Repayment Period:

• Maximum of 5 years.

Processing Charge:

• Upto Rs.25000/ : Nil
• above Rs.25000/-: 0.50% of the limit sanctioned + Applicable GST.

Rate of Interest:

• Please refer the Lending Rates link on home page in our Bank’s Website www.indianbank.in.

Security:

• Primary: Hypothecation of charge on assets created out of Bank finance.
• Collateral: No collateral should be obtained for limit up to Rs. 1.60 Lakhs. Minimum Security Coverage Ratio of 1.20 should be maintained at all times.
• Guarantee: Suitable third party guarantee may be obtained depending upon the loan amount.

Subsidy/ Grant:

• Central Financial Assistance (CFA) of 30% of the benchmark cost or the tender cost, whichever is lower, of the stand-alone solar Agriculture pump will be provided. The State Government will give a subsidy of 30%; and the remaining 40% will be provided by the farmer. In case the State Government provides subsidy more than 30%, the beneficiary share will reduce accordingly.
• However, in North Eastern States, Sikkim, Jammu & Kashmir, Himachal Pradesh and Uttarakhand, Lakshadweep and A&N Islands, CFA of 50% of the benchmark cost or the tender cost, whichever is lower, of the solar PV component will be provided. The State Government will give a subsidy of 30%; and the remaining 20% will be provided by the farmer. Bank finance may be made available for farmer’s contribution, so that farmer has to initially pay only 10% of the cost and remaining up to 10%.