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					</table><p>Lending institutions are reporting a sharp rise in demand for clean-energy financing from India’s commercial and industrial (C&amp;I) sector, as companies ramp up investments in rooftop solar, green energy open access, and energy efficiency measures to lower operating costs and advance carbon-reduction goals.</p>
<p>With electricity expenses representing a substantial portion of their overhead, C&amp;I consumers are increasingly opting for specialized green-loan products that offer lower interest rates, quicker processing, and, in many cases, collateral-free terms.</p>
<p>Banks note that the shift toward solar and other renewable solutions has become both financially compelling and strategically essential for long-term competitiveness, driving a rapid expansion of customized loan products for micro, small, and medium enterprises (MSMEs) as well as larger industrial consumers.</p>
<p>According to Small Industries Development Bank of India (<a href="https://www.sidbi.in/en/" target="_blank" rel="noopener">SIDBI</a>) Deputy General Manager Pradyumna Choudhury two nationwide programs, MSME Green Finance Scheme (GFS) and MSME ARISE, offer financial assistance to companies investing in solar and green energy systems.</p>
<p>The GFS program supports investment in solar and other green energy systems, with term loans of up to ₹20 million (~$224,400) and offers a 2% interest subvention.</p>
<p>The program covers 864 eligible MSME initiatives, including renewable energy solutions.</p>
<p>The MSME ASPIRE program supports recycling and circular-economy projects and provides subsidies of up to ₹1.25 million (~$14,025) for investments of ₹25 million (~$280,500).</p>
<p>SIDBI also operates a Green Financing Scheme for grid-connected renewable power and open access power procurement. Loan sizes under this program range from ₹10 million (~$112,200) to ₹2 billion (~$22.4 million) with lower margin requirements.</p>
<p>Chaudhry stated that loan sanctioning can take place in 30 minutes and disbursal within one day for qualified applicants.</p>
<p>“Your CMR or CIBIL score should be good, the three-year balance sheet must show net profit, and GST returns must be filed on time. If all three are in place, the loan will most likely be sanctioned in 30 minutes,” he said. For more complex greenfield proposals, processing could take up to one month.</p>
<p>Collateral-free financing has been expanded through government guarantee mechanisms. SIDBI operates the credit guarantee fund trust for micro and small enterprises (C-GTMSE), which provides collateral-free lending up to ₹100 million (~$1.12 million), and a mutual credit guarantee program enabling loans from ₹100 million (~$1.12 million) to ₹1 billion (~$11.22 million) without collateral.</p>
<p>In addition, a World Bank–backed partial risk-sharing facility is available to support renewable-energy projects. SIDBI is offering collateral-free loans of up to ₹150 million (~$1.68 million) to enterprises with at least three years of audited financials and a track record of profitability, specifically for machinery purchases or solar equipment financing.</p>
<p><a href="https://www.idbi.bank.in/" target="_blank" rel="noopener">IDBI Bank</a> has also expanded its green-loan portfolio. Pankaj Kumar, DGM of Priority Sector Lending at IDBI Bank, said the bank finances solar, wind, and other renewable-energy assets through green loan programs aligned with India’s carbon-reduction goals.</p>
<p>The bank provides rooftop solar loans and commercial renewable energy loans with funding support up to 85% and collateral-free options for certain categories. For the PM Surya Ghar program, loans are available up to ₹300,000 (~$3,380) with no collateral, and 85% of the loan can be funded, said Kumar, noting that loan buckets include plans up to ₹2.5 million (~$28,200) and up to ₹20 million (~$226,000).</p>
<p>IDBI’s minimum lending rate is 8.35%, determined under the RBI risk-linked lending rate framework. Credit rating is a major factor in pricing, based on four parameters: business viability, industry category, promoters’ strength, and financials.</p>
<p><a href="https://bankofmaharashtra.bank.in/" target="_blank" rel="noopener">Bank of Maharashtra</a> offers renewable-energy financing with loans starting at 8.4% interest for customers with a high commercial credit rating (CMR-1 or CMR-2), and loans of ₹2.5 million (~$28,200) to ₹500 million (~$5.61 million) under MSME lending.</p>
<p>According to Chief Manager Chandan Kumar, the bank funds 75% of the project cost with a 25% borrower margin contribution. Loan eligibility is based on internal credit ratings up to ₹250 million (~$2.80 million) and external ratings above ₹250 million (~$2.80 million), in line with RBI regulations.</p>
<p>The bank provides interest-rate concessions based on collateral coverage levels, offering reductions of 0.75% for coverage above 100% and 0.5% for coverage between 75% and 100%. Borrowers with collateral-free loans under C-GTMSE can access loans up to ₹100 million (~$1.12 million).</p>
<p>Demand from industrial clusters, especially rice-mill clusters, has grown significantly. IDBI reported that four rooftop solar proposals were sanctioned within one month, three of which were from large MSMEs in the agro-processing sector.</p>
<p>Clean-energy installations such as rooftop solar and solar pumps are being positioned as long-term cost-reduction tools. Chandan Kumar said that a 7.5 HP solar pump, with a 20-25-year lifespan, can eliminate diesel dependence for farmers, with investment recovery through subsidy and reduced operating expenses.</p>
<p>These discussions were part of Mercom’s <a href="https://www.mercomindia.com/event/c-and-i-clean-energy-meet-2025-bhubaneswar" target="_blank" rel="noopener">C&amp;I Clean Energy Meet</a> in Bhubaneswar. The event was held to connect C&amp;I consumers with renewable energy developers and provide clarity on how businesses can transition to clean energy sources and access financing options.</p>
<p>The next Mercom India C&amp;I Clean Energy Meet event will be held in <a href="https://www.mercomindia.com/event/c-and-i-clean-energy-meet-2025-nagpur" target="_blank" rel="noopener">Nagpur</a> on December 12, 2025.</p>
<p><a href="mailto:sales@mercomindia.com?subject=Seeking%20Solar%20Installation%20Guidance%20and%20Vendor%20Recommendations%20for%20Business" target="_blank" rel="noopener">Contact us</a> if you plan to install solar and need guidance or recommendations for vendors.</p>


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