Indicative ₹2 Crore financing for a solar energy unit + a full bank-ready report with CMA data, DSCR ≥ 1.50 and 5-year projections.
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For entrepreneurs in India planning a ₹2 Crore solar energy unit, a bank-ready project report is essential for securing term loans under MUDRA Tarun, CGTMSE, or Stand-Up India schemes. This report, typically prepared by a Chartered Accountant, includes detailed CMA data (current, projected balance sheets, P&L, and fund flow), DSCR calculations (target >1.5), and 5-year financial projections. It also covers project cost breakup (₹20 Lakh promoter margin, ₹1.80 Cr term loan), EMI of ~₹3,08,204/month at 11% over 7 years, and subsidy eligibility under PM-KUSUM or state schemes. A comprehensive report demonstrates viability to banks, reduces rejection risk, and ensures faster sanction. NIC code 35106 (Electric power generation using solar energy) is used for classification. This page provides specific guidance on eligibility, documentation, and step-by-step loan processing for solar units across states like Rajasthan, Gujarat, Maharashtra, and Tamil Nadu.
Solar energy units with project cost up to ₹2 Crore can avail loans under MUDRA Tarun (up to ₹10 Lakh), but for ₹1.80 Cr term loan, CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) provides collateral-free coverage up to ₹2 Crore. Stand-Up India supports SC/ST/women entrepreneurs with 10% promoter contribution and loans up to ₹75 Lakh (can be combined with other sources). PM-KUSHA (now PM-KUSUM) offers 30% subsidy on solar pumps/grid-connected projects, but for standalone solar units, state-level subsidies (e.g., Gujarat's 40% on rooftop solar) may apply. Key eligibility: business must be in manufacturing/service with NIC 35106; minimum 5 years of experience for the promoter (or relevant qualification); good credit score (CIBIL 700+); and project location must have adequate solar irradiance (most Indian states qualify).
For a ₹2 Crore solar unit, the typical financing structure: Promoter margin: ₹20 Lakh (10% of project cost) – can be from own funds or unsecured loan. Term loan: ₹1.80 Crore from bank at 11% p.a., repayable over 7 years with monthly EMI of ₹3,08,204. The project cost includes: land (₹30-50 Lakh for 1-2 acres), solar panels (₹80 Lakh for 1 MW capacity), inverters & mounting (₹30 Lakh), installation & civil work (₹20 Lakh), and contingency (₹20 Lakh). Working capital: additional ₹20 Lakh for 3 months' O&M. Banks may ask for 1st year's debt service coverage ratio (DSCR) of 1.25+; projected P&L shows revenue from PPA at ₹4-5/kWh, generating ~₹15 Lakh/month for 1 MW. Subsidy: Under PM-KUSUM, 30% subsidy on capital cost (₹60 Lakh) reduces promoter burden, but subsidy is disbursed after installation, so bridge finance may be needed.
Essential documents for ₹2 Cr solar loan: (1) Project report with CMA data, DSCR, 5-year cash flow. (2) KYC: Aadhaar, PAN, passport photos of promoters. (3) Business proof: GST registration, Udyam certificate (MSME), NIC 35106 registration. (4) Land documents: title deed, 7/12 extract, NOC from municipality if needed. (5) Quotations from solar equipment suppliers (panels, inverters) with warranty details. (6) PPA/LOI from DISCOM or corporate off-taker (if applicable). (7) Financials: 3 years ITR, audited balance sheet, bank statements (6 months). (8) CGTMSE form if collateral-free. (9) Subsidy application proof for PM-KUSUM. (10) Project site photos and feasibility report (shadow analysis, irradiance data). Banks like SBI, PNB, Canara, and private NBFCs (L&T, Tata Capital) process these loans; turnaround time: 4-8 weeks.
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Financing structured for a ₹2 Crore solar energy unit: margin, term loan & EMI.
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Exact means of finance, CMA, DSCR ≥ 1.50 in the generated report.
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Indicatively ≈ ₹3,08,204/month on the ~₹1.80 Cr term-loan portion (at 11% over 7 years), with ~₹20 Lakh promoter margin. The report computes exact figures.
Banks typically expect ~10% margin — about ₹20 Lakh for a ₹2 Crore project — plus any scheme subsidy.
MUDRA Tarun, CGTMSE, Stand-Up India fit this range. The report is configured to your chosen scheme.
Yes, under CGTMSE, loans up to ₹2 Crore for MSMEs are collateral-free. You need to pay a guarantee fee (0.75-1.5% of loan amount) and the bank will not ask for property mortgage. However, personal guarantee of promoters is required. For Stand-Up India, loans up to ₹75 Lakh are collateral-free; for higher amounts, partial collateral may be needed.
The EMI is approximately ₹3,08,204 per month. This is calculated using the formula: EMI = P x R x (1+R)^N / ((1+R)^N - 1), where P=1,80,00,000, R=11%/12=0.009167, N=84 months. The total interest over 7 years is about ₹79.5 Lakh, making total repayment ₹2.59 Cr.
Yes, the central government's PM-KUSUM scheme provides a 30% capital subsidy for solar projects (up to 2 MW) for farmers and rural areas. State-level subsidies vary: Gujarat offers up to 40% for rooftop solar, Maharashtra 20%, and Rajasthan 30%. For industrial units, some states offer generation-based incentives. You must apply through the state nodal agency (e.g., GEDA for Gujarat, MEDA for Maharashtra).
Typically 4-8 weeks from application to disbursement. The timeline depends on document completeness, bank's internal credit assessment, and site visit. Using a CA-prepared project report with CMA and DSCR can speed up the process. Pre-approval from banks like SBI or Canara Bank can reduce waiting time.