Three common home solar sizes in India in 2026 are 3 kW, 5 kW, and 10 kW, and each one finances very differently once you subtract the ₹78,000 PM Suryaghar subsidy. On a 5-year SBI PM Surya Ghar loan, a 3 kW system (₹87,000–₹1,07,000 after subsidy, at 5.75%) works out to an Equated Monthly Instalment (EMI) of around ₹1,672–₹2,056. A 5 kW system runs ₹3,682–₹4,187 at 7.90%. A 10 kW system runs ₹8,536–₹9,548 at 7.90%. In every case the EMI sits below the monthly bill saving we assume for that size, which is the whole point of financing solar rather than paying upfront.
This guide gives you the actual EMI math, loan type by loan type, tenure by tenure, for each of the three sizes, after the PM Suryaghar subsidy is correctly applied. It covers the PM Surya Ghar loans from public sector banks (SBI, Bank of Baroda, Union Bank, PNB) and the personal loans from lenders such as ICICI Bank, Tata Capital and Bajaj Finance that some buyers use instead. HDFC, ICICI, Tata Capital and Bajaj Finance have no dedicated solar loan.
Direct answer. After the ₹78,000 PM Suryaghar subsidy, a 3 kW system finances at an EMI of ₹1,672–₹2,056 (5-year, SBI’s 5.75% rate for loans up to ₹2 lakh), a 5 kW at ₹3,682–₹4,187 and a 10 kW at ₹8,536–₹9,548 (5-year, SBI’s 7.90% rate for ₹2 lakh to ₹6 lakh). These PM Surya Ghar bank loans are the cheapest residential option; personal loans start around 10% (Bajaj Finance lists 10% to 30.5%) but can disburse faster. On the bill savings we assume, EMI stays below savings for all three sizes from month one, so cash flow stays positive.
If you’re sizing your loan right now, the most important rule is this: plan the loan against the net cost after subsidy, not the gross system cost. Left on a 5-year loan, ₹78,000 of principal costs ₹12,000–₹31,000 in interest, depending on the rate (5.75% to 14%).
Why Solar EMI Calculation Needs to Subtract the Subsidy First
The single most common mistake we see across residential applications is borrowers sizing their loan against the gross system cost (₹1.65–₹5.5 lakh) instead of the net cost after the ₹78,000 PM Suryaghar subsidy lands. That subsidy is paid as a Direct Benefit Transfer (DBT) under the Ministry of New and Renewable Energy scheme: it is processed within 15 days of DISCOM approval and released when you redeem the e-token on the portal. If the system is financed, MNRE’s guidelines send it to your loan account first; otherwise it goes to the bank account in your name submitted on the portal, never the installer’s.
If you borrow the full gross amount and leave it there, you pay EMI on ₹78,000 of principal that you don’t actually need. Over 5 years at SBI’s 7.90%, that’s roughly ₹16,700 of avoidable interest. Over 7 years, it climbs to about ₹23,800. A PM Surya Ghar bank loan handles this for you, because the subsidy is credited to the loan account and cuts the principal. With a personal loan or a home loan top-up, the subsidy reaches your bank account and you have to prepay it yourself, or borrow only the net amount and fund the gap until the subsidy arrives, which is what we walk through in the framework below.
Scheme loans are sanctioned on the project cost less your margin, not on the post-subsidy amount, so the EMI quoted at sanction is on the larger figure. SBI, PNB, Union Bank and Bank of Baroda ask for the loan account number so the subsidy can be credited to the loan; ask the branch whether it then recalculates the EMI or shortens the tenure. HDFC and ICICI have no scheme loan, so the subsidy will not reduce their loans automatically.
The size-by-size breakdown that follows assumes the disciplined version, gross system cost minus ₹78,000 subsidy, so the EMI math reflects what you’ll actually be paying once the subsidy is processed under the MNRE scheme and credited.
The 4-Variable Solar EMI Calculation Method
We call this The 4-Variable Solar EMI Calculation Method because every residential solar EMI is driven by exactly four numbers, and getting any one of them wrong changes the monthly outflow by hundreds of rupees. This is the same framework our finance team applies to every Heaven Green Energy quotation before it goes to the customer.
The four variables, in the order you must lock them down:
Lock all four before you walk into the bank. EMI calculators on SBI, HDFC Bank, and ICICI Bank websites will give you the per-month number once you have these inputs ready. For a side-by-side comparison of the bank scheme loans, see our solar loan EMI comparison guide.
EMI for 3 kW Solar (₹87K–₹1.07L Net Loan After Subsidy)
A 3 kW grid-tied residential system costs ₹1.65–₹1.85 lakh all-in across most of north and west India, including panels, inverter, BOS (Balance of System), installation, net meter, and DISCOM coordination. After the ₹78,000 PM Suryaghar subsidy, your net loan amount sits between ₹87,000 and ₹1,07,000.
3 kW is the sweet spot for PM Suryaghar, it’s the smallest size that unlocks the maximum ₹78,000 subsidy, and it fits within the 3 kW sanctioned load that many homes already have. Monthly generation runs around 340 to 405 units (kWh) depending on location and irradiance, which offsets a ₹3,000–₹3,500 monthly electricity bill in many homes.
3 kW EMI by loan type and tenure (after subsidy)
EMIs below are calculated on a representative ₹97,000 net loan amount (mid-point of ₹87K–₹1.07L). Scale linearly within ±10% for your exact loan size.
| Loan | Rate | 3-year EMI | 5-year EMI | 7-year EMI | 10-year EMI | Notes |
|---|---|---|---|---|---|---|
| PM Surya Ghar loan (SBI, Bank of Baroda, Union Bank) | 5.75% | ₹2,940 | ₹1,864 | ₹1,405 | ₹1,065 | Loans up to ₹2 lakh; nil fee at SBI and BoB; SBI asks no minimum CIBIL or income proof |
| Personal loan (Tata Capital’s advertised starting rate) | 10.99% | ₹3,175 | ₹2,109 | ₹1,660* | Not offered | Fixed-rate personal loans can charge for prepayment |
| Personal loan | 14.00% | ₹3,315 | ₹2,257 | ₹1,818* | Not offered | Within ICICI’s 9.99%–16.50% and Bajaj Finance’s 10%–30.5% ranges |
Assumptions: principal is the ₹1.65–₹1.85 lakh system cost less the ₹78,000 subsidy (₹30,000/kW for the first 2 kW plus ₹18,000 for the 3rd kW). EMIs use the standard reducing-balance formula. SBI’s 5.75% applies because the sanctioned loan on a system of up to ₹1.85 lakh stays within ₹2 lakh even before the subsidy is credited. The figures ignore SBI’s 6-month moratorium (interest accrues during it), margin money, processing fees and insurance. Rates as listed on 2 October 2026. *7-year personal loans: Bajaj Finance lists up to 108 months; ICICI and Tata Capital stop at 72 months (6 years).
Even on a 14% personal loan over 5 years, a 3 kW system costs ₹2,257/month in EMI, well below the ₹3,350 monthly bill saving we assume for a typical Jaipur or Ahmedabad home. Cash flow stays positive from the first billing cycle after commissioning.
For a deep look at the SBI product specifically, see our SBI solar loan guide. For HDFC, the HDFC solar loan breakdown covers how its home improvement loans and top-ups work for solar.
EMI for 5 kW Solar (₹1.82L–₹2.07L Net Loan)
A 5 kW grid-tied residential system costs ₹2.60–₹2.85 lakh all-in across mainstream metros. After the ₹78,000 PM Suryaghar subsidy, the net loan sits at ₹1,82,000–₹2,07,000. The subsidy is capped at ₹78,000 regardless of system size above 3 kW, so the marginal 2 kW above the base 3 kW is unsubsidised, which makes the net loan jump significantly.
5 kW is the right size for a 3- or 4-BHK with active air conditioning across two to three rooms, electric water heating, and a typical monthly bill of ₹5,000–₹6,000. Monthly generation runs around 565 to 675 units depending on location.
5 kW EMI by loan type and tenure (after subsidy)
EMIs below are calculated on a representative ₹1,94,500 net loan amount (mid-point of ₹1.82L–₹2.07L).
| Loan | Rate | 3-year EMI | 5-year EMI | 7-year EMI | 10-year EMI | Notes |
|---|---|---|---|---|---|---|
| PM Surya Ghar loan (SBI) | 7.90% | ₹6,086 | ₹3,934 | ₹3,022 | ₹2,350 | Above ₹2 lakh: CIBIL 650, ₹3 lakh income, 2 years’ ITR; nil fee |
| Personal loan (Tata Capital’s advertised starting rate) | 10.99% | ₹6,367 | ₹4,228 | ₹3,329* | Not offered | Fixed-rate personal loans can charge for prepayment |
| Personal loan | 14.00% | ₹6,648 | ₹4,526 | ₹3,645* | Not offered | Within ICICI’s and Bajaj Finance’s published ranges |
Assumptions: principal is the ₹2.60–₹2.85 lakh system cost less the ₹78,000 subsidy cap (no extra subsidy above 3 kW). SBI’s 7.90% applies because, after SBI’s minimum 10% margin, the sanctioned loan on a ₹2.60–₹2.85 lakh system is above ₹2 lakh; Bank of Baroda lists from 7.90% above ₹2 lakh and Union Bank EBLR + 1.00% or 1.50%. If you pay a larger margin to keep the sanctioned loan at ₹2 lakh or less, SBI’s 5.75% applies instead, though you fund more of the cost upfront. Same exclusions as the 3 kW table. *7-year personal loans: Bajaj Finance only, among the lenders named.
A typical 5 kW Jaipur or Vadodara home saves around ₹5,250/month on electricity (our assumption). Even a 14% personal loan over 5 years (₹4,526 EMI) stays below that. SBI at 7.90% over 5 years is the conventional residential choice, ₹3,934/month EMI against ₹5,250 of savings leaves ₹1,316/month of free cash, which you can route into an annual prepayment.
Fast tip. If you’re financing 5 kW on a floating-rate PM Surya Ghar loan, schedule a one-time prepayment of ₹40,000–₹50,000 at month 13, from the first year’s surplus plus a bonus or savings. On ₹1,94,500 at 7.90% over 5 years, that cuts total interest by about 30% to 36% and closes the loan 13 to 16 months early, with no prepayment penalty at SBI.
For a complete walkthrough of zero-down options, read our guide on zero-down-payment solar in 2026. To compare the right system size for your home, see 3 kW vs 5 kW vs 10 kW home solar in 2026.
Get a free EMI plan. Our finance team builds a complete EMI projection with prepayment timing, lender comparison, and bill-savings cashflow, no cost, no obligation. Get your free quote →
EMI for 10 kW Solar (₹4.22L–₹4.72L Net Loan)
A 10 kW grid-tied residential system costs ₹5.0–₹5.5 lakh all-in. After the ₹78,000 PM Suryaghar subsidy, the net loan sits at ₹4,22,000–₹4,72,000. 10 kW is also the top of the PM Surya Ghar loan range: SBI and PNB lend up to ₹6 lakh for systems up to 10 kW. Rooftop net metering limits above that size vary by state and DISCOM, and larger systems may fall under gross metering or net-billing, so check your DISCOM’s rules before going bigger.
10 kW is the right size for a large independent house, a multi-AC load, electric vehicle (EV) charging, and electric water heating combined. Monthly generation runs around 1,130 to 1,350 units depending on location, enough to offset a ₹10,000–₹11,000 monthly bill in many homes.
10 kW EMI by loan type and tenure (after subsidy)
EMIs below are calculated on a representative ₹4,47,000 net loan amount (mid-point of ₹4.22L–₹4.72L).
| Loan | Rate | 3-year EMI | 5-year EMI | 7-year EMI | 10-year EMI | Notes |
|---|---|---|---|---|---|---|
| PM Surya Ghar loan (SBI) | 7.90% | ₹13,987 | ₹9,042 | ₹6,945 | ₹5,400 | Within SBI’s ₹6 lakh cap; hypothecation, no property mortgage |
| Personal loan (Tata Capital’s advertised starting rate) | 10.99% | ₹14,632 | ₹9,717 | ₹7,651* | Not offered | Fixed-rate personal loans can charge for prepayment |
| Personal loan | 14.00% | ₹15,277 | ₹10,401 | ₹8,377* | Not offered | Within ICICI’s and Bajaj Finance’s published ranges |
Assumptions: principal is the ₹5.0–₹5.5 lakh system cost less the ₹78,000 subsidy cap. After SBI’s 10% margin the sanctioned loan is ₹4.5–₹4.95 lakh, inside the ₹6 lakh cap, at 7.90%. Same exclusions as the 3 kW table. *7-year personal loans: Bajaj Finance only, among the lenders named.
The 10 kW EMI gap between SBI’s 7.90% and a 10.99% personal loan is ₹675/month on a 5-year tenure, about ₹40,500 over the loan life. For high-load homes that saving is usually worth the extra portal and branch steps, so the scheme loan usually wins on total cost. For ICICI specifically, see our ICICI solar loan 2026 guide; for personal loans, the Tata Capital and Bajaj Finance breakdowns cover documentation and disbursal speed.
A 10 kW Jaipur home saves around ₹10,500/month on electricity (our assumption). Even a 14% personal loan over 5 years (₹10,401 EMI) sits just below savings, with almost no cushion. The 5-year SBI choice leaves ₹1,458/month of free cash, ideal for an annual prepayment cycle.
Tenure Trade-Off: 3 yr vs 5 yr vs 7 yr
The single biggest lever you control on your solar EMI is the tenure. The table below shows the trade-off for a representative ₹2 lakh loan at 5.75%, SBI’s PM Surya Ghar rate for loans up to ₹2 lakh: the same total principal at four different repayment horizons.
Total interest paid comparison (₹2 lakh @ 5.75%)
| Tenure | EMI | Total Paid | Total Interest | EMI vs 5-yr baseline |
|---|---|---|---|---|
| 3 years | ₹6,062 | ₹2,18,223 | ₹18,223 | +58% EMI |
| 5 years | ₹3,843 | ₹2,30,601 | ₹30,601 | Baseline |
| 7 years | ₹2,898 | ₹2,43,415 | ₹43,415 | –25% EMI |
| 10 years | ₹2,195 | ₹2,63,446 | ₹63,446 | –43% EMI |
Assumptions: standard reducing-balance EMI on ₹2,00,000 at 5.75%; ignores the 6-month moratorium included in SBI’s 120-month maximum.
The 5-year tenure is our residential default for solar because it strikes the right balance, total interest stays at about 15% of principal, EMI sits about 37% below the 3-year option, and the loan closes well before any major component (inverter) might need replacement. The 7-year option lowers monthly outflow further but adds ₹12,814 to total interest versus 5-year. The 10-year option only makes sense if cash flow is genuinely tight or if you’re matching the loan to the panel warranty period.
For 3 kW and 5 kW systems, we recommend 5 years on a PM Surya Ghar bank loan. For 10 kW where the absolute monthly EMI gets larger, the 7-year option keeps the EMI comfortably below bill savings and gives more cushion for AC-heavy summer months.
Common Mistakes Solar EMI Borrowers Make
We’ve seen the same six errors repeatedly across the residential loans we process. Each one costs ₹15,000–₹50,000 in unnecessary interest or fees over the loan tenure.
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1
Borrowing the gross system cost instead of net-of-subsidy. On a personal loan or top-up, the subsidy does not reduce the loan by itself. Leave ₹78,000 on a 5-year loan and you pay about ₹23,700 of interest on it at 10.99%, or ₹16,700 at 7.90%.
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2
Choosing 3-year tenure to "save interest" without checking EMI vs bill savings. A 3-year EMI of ₹2,940 on a 3 kW PM Surya Ghar loan leaves only ₹410 of headroom under a ₹3,350 bill saving, no cushion for floating-rate increases or summer AC spikes. Cash flow can go negative.
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3
Picking a personal loan for the speed without checking the rate. A 10.99% personal loan instead of SBI's 5.75% scheme rate costs ₹30,248 extra interest on a 5-year ₹2 lakh loan. Worth the wait for the scheme loan in most cases.
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4
Skipping the scheme loan and pre-paying out of pocket. A PM Surya Ghar loan already bridges the ₹78,000 subsidy gap: the bank funds the system and the subsidy is credited to the loan account. Self-funding the gap drains your emergency reserves needlessly.
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5
Not checking the processing fee. SBI, PNB and Bank of Baroda charge nothing on their PM Surya Ghar loans; personal loans charge up to 2% at ICICI and up to 4.13% at Bajaj Finance, about ₹8,260 on ₹2 lakh.
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6
Forgetting to time the month-13 prepayment. On a scheme loan the subsidy is credited for you, but the year-one surplus of bill savings over EMI (about ₹15,800 on a 5 kW system at 7.90%) is yours to prepay. Schedule it, don't let the cash sit idle in a savings account.
For more on the documentation and disbursal flow specifically, see our zero-down-payment solar guide, it walks through the financing structures that avoid most of these errors.
Solar EMI vs Savings, When EMI < Bill Saving
The cleanest test of whether solar financing actually works for you is the EMI-vs-savings comparison. If EMI is less than monthly bill savings, you have positive cash flow from month one and the system pays for itself out of the electricity you would have paid the DISCOM. Here’s how that math looks for all three sizes on a 5-year SBI PM Surya Ghar loan (5.75% for 3 kW, 7.90% for 5 kW and 10 kW).
| System | Net loan | EMI (5-yr, SBI) | Bill savings/mo | Net cash flow |
|---|---|---|---|---|
| 3 kW | ₹97,000 (mid) | ₹1,864 | ₹3,350 | +₹1,486 |
| 5 kW | ₹1,94,500 (mid) | ₹3,934 | ₹5,250 | +₹1,316 |
| 10 kW | ₹4,47,000 (mid) | ₹9,042 | ₹10,500 | +₹1,458 |
Assumptions: bill savings are our assumed monthly figures for typical north and west Indian homes, not guarantees; your saving depends on your tariff slab, consumption and generation. EMIs use the net loan mid-points above and ignore the 6-month moratorium.
In every case the homeowner ends the month with cash in pocket relative to the no-solar baseline. Over a 5-year tenure that’s ₹79,000–₹89,000 of accumulated positive cash flow, ignoring the system’s continued generation through years 6 to 25 when it’s debt-free.
Pros and cons of stretching the tenure
- Lower monthly EMI, about 23 to 43% below the 5-year option
- More cushion for floating-rate increases
- Frees monthly cash for prepayment or other savings
- EMI stays comfortably below bill savings even in low-generation months
- Total interest about 40% higher at 7 years, and more than double at 10 years, than the 5-year tenure
- Floating-rate exposure stretches across more interest cycles
- Loan can outlast the inverter's standard warranty (5 to 10 years)
- Reduces flexibility for future loans (higher debt-to-income ratio)
Verdict on tenure choice
Verdict. For 3 kW and 5 kW residential systems, a 5-year SBI PM Surya Ghar loan (5.75% up to ₹2 lakh, 7.90% above) is the right default. EMI stays below savings, total interest is contained at about 15% to 21% of principal, and a ₹40,000 prepayment at month 13 closes a 5 kW loan in about 47 months. For 10 kW where absolute EMI is larger, a 7-year tenure on the same SBI loan at 7.90% (₹6,945 on ₹4.47 lakh) gives more breathing room and still produces positive cash flow. Use a personal loan from Bajaj Finance or Tata Capital only if you cannot use the scheme loan or timing matters more than total cost.
How Heaven Green Energy Helps with EMI Planning
Heaven Green Energy is MNRE-empanelled across Rajasthan, Gujarat, and Madhya Pradesh and has helped customers structure over 2,000 solar loans, across PSU-bank PM Surya Ghar loans, personal loans and HDFC home loan top-ups. We don’t sell loans, we recommend the right lender for your profile based on rate, speed, documentation match, and prepayment flexibility.
What our finance team does on every residential loan:
- Net-of-subsidy loan sizing. We compute the right net loan amount for your gross system cost and prevent the ₹78,000 over-borrow that most installers ignore.
- Five-lender rate comparison. We compare the published rates of SBI, HDFC, ICICI, Tata Capital, and Bajaj for your specific loan amount and tenure.
- Bridge loan structuring. We arrange a 30-day bridge to cover the gap between commissioning and PM Suryaghar DBT, at zero additional interest in most cases.
- Month-13 prepayment planning. We schedule the optimal first prepayment so your subsidy DBT plus year-one savings close the loan 12 to 18 months early.
- CIBIL score pre-check. Before any application, we pull your bureau score to qualify you for the lowest-rate tier (SBI asks for 650 above ₹2 lakh, and Union Bank prices loans above ₹2 lakh lower for scores of 750+).
- Document pre-validation. DISCOM sanction letter, ownership proof, ITR, checked and clean before the bank ever sees them.
Explore the services that match your project:
- Residential Solar: 3 to 10 kW rooftop systems with EMI structuring and PM Suryaghar handled end-to-end.
- Solar Calculator: enter your bill and see loan EMI vs savings in 60 seconds.
- Contact Heaven Green: book a free 24-hour site visit and 48-hour custom EMI proposal.
Call our finance specialist at +91 63904 05060 or request a callback. We will recommend the right lender, structure the loan, and walk you through the DBT timeline before you sign anything.
Frequently Asked Questions
What is the EMI for a 3 kW solar system after the PM Suryaghar subsidy in 2026?
After the ₹78,000 PM Suryaghar subsidy, a 3 kW system carries a net loan of ₹87,000–₹1,07,000. On SBI’s PM Surya Ghar loan at 5.75% over 5 years, the EMI works out to ₹1,672 on the ₹87,000 lower bound and ₹2,056 on the ₹1.07 lakh upper bound. A personal loan at 10.99% adds ₹219–₹270 to the monthly EMI. The EMI sits well below the ₹3,350 monthly bill saving we assume for a 3 kW system in Jaipur, Ahmedabad, or Pune.
What is the EMI for a 5 kW solar system after the PM Suryaghar subsidy in 2026?
After the ₹78,000 subsidy, a 5 kW net loan is ₹1.82–₹2.07 lakh. At SBI’s 7.90% over 5 years, EMI is ₹3,682 on ₹1.82 lakh and ₹4,187 on ₹2.07 lakh. A 10.99% personal loan adds about ₹274–₹313/month. Monthly bill savings of around ₹5,250 in north India keep cash flow positive by about ₹1,060–₹1,570/month. The 5-year tenure remains the residential standard for this size.
What is the EMI for a 10 kW solar system after the PM Suryaghar subsidy in 2026?
After the ₹78,000 subsidy, a 10 kW net loan is ₹4.22–₹4.72 lakh. At SBI’s 7.90% over 5 years, EMI is ₹8,536 on ₹4.22 lakh and ₹9,548 on ₹4.72 lakh. For this size we usually recommend stretching the same SBI loan to 7 years, which brings EMI to ₹6,556–₹7,333 and gives breathing room against the ₹10,500/month bill saving we assume.
Should I borrow the gross system cost or only the post-subsidy amount?
Plan the loan around the post-subsidy net amount. The PM Suryaghar ₹78,000 is processed within 15 days of DISCOM approval and, on a financed system, is credited to the loan account first, per MNRE. If ₹78,000 stays on a 5-year loan at 7.90%, you pay roughly ₹3,300/year of needless interest. On a PM Surya Ghar loan, give the bank your loan account details for the portal so the subsidy goes to the loan; on a personal loan, it reaches your bank account and you prepay it yourself.
Which bank offers the lowest solar EMI for residential systems in 2026?
For households, the lowest listed rate is 5.75% for PM Surya Ghar loans up to ₹2 lakh at SBI, Union Bank and Bank of Baroda (checked 2 October 2026), with SBI at 7.90% from ₹2 lakh to ₹6 lakh. HDFC’s home improvement loans are listed from 7.75% and are secured on your house. Personal loans start around 10% (ICICI 9.99%–16.50%, Bajaj Finance 10%–30.5%, Tata Capital from 10.99%) but can be faster: Bajaj states approved loans are credited within 24 hours, while banks publish no fixed timeline for scheme loans. For pure rate hunting, the scheme loan wins.
How does prepayment affect my solar EMI loan?
A planned prepayment at month 13 cuts total interest sharply: on a 5 kW loan of ₹1,94,500 at 7.90% over 5 years, prepaying ₹40,000 after the 12th EMI cuts total interest by about 30%. SBI lists no prepayment penalty on its Surya Ghar loan, RBI rules bar pre-payment charges on floating-rate loans to individuals for non-business purposes, and HDFC charges no foreclosure fee on variable-rate home loans. Fixed-rate personal loans can charge: ICICI 3% of the outstanding principal until 24 EMIs are paid, Bajaj Finance up to 4.72%.
Is a 3-year tenure better than 5-year for total interest paid?
A 3-year tenure saves around ₹12,400 in total interest on a ₹2 lakh loan at 5.75%, but raises EMI by 58% versus the 5-year option. For most homes, that higher EMI eats into the cushion above monthly bill savings, you lose flexibility for floating-rate hikes or peak-summer AC bills. The 5-year tenure remains the disciplined residential default; use the lower 5-year EMI plus planned prepayments to capture the interest savings without the cash-flow squeeze.
Can I get a solar loan without putting any money down?
Not with a PM Surya Ghar bank loan: SBI asks for a margin of at least 10% of the project cost, and PNB 10% up to ₹2 lakh and 20% above. The subsidy then reduces the loan, since it is processed within 15 days of DISCOM approval and, on a financed system, is credited to the loan account first. Full 100% financing generally means a personal loan at a higher rate. For the full structure, see our zero-down-payment solar guide.
Are solar EMIs eligible for income tax deduction?
For residential homeowners, interest on a standalone solar or personal loan is not deductible as home loan interest. Interest on a home loan or top-up used for the house may count towards the house-property interest deduction, subject to its limits and your tax regime. For self-employed and businesses, the loan interest can be deducted as a business expense, and the system itself attracts 40% Accelerated Depreciation. Always consult a chartered accountant for your specific tax position.
What happens to my EMI if RBI changes the repo rate during my floating-rate loan?
PM Surya Ghar loans from SBI (linked to its external benchmark rate) and Union Bank (EBLR-linked), and HDFC’s repo-linked home loans, reset when the benchmark changes; external-benchmark loans reset at least once every three months. A 25-basis-point repo rate hike typically passes through as a 25-bp loan rate increase, which adds about ₹24/month to the EMI on a ₹2 lakh 5-year loan. Build a 1% cushion when planning, if your EMI stays under bill savings even at rate + 1%, you’re insulated against normal cycles.