Revolutionizing Solar Financing for MSEs with Tata Power and IndusInd Bank Partnership

Tata Power Renewable Energy Ltd has teamed up with IndusInd Bank to provide financing options to Micro and Small Enterprises for solar installations. The partnership offers collateral-free loans ranging from Rs 10 lakh to Rs 2 crore with competitive interest rates and terms of up to 7 years. This initiative aims to enable MSEs to adopt solar energy, reduce operational costs, and support green energy transition.

Tata Power Renewable Energy Ltd and IndusInd Bank have joined forces to extend financing options to micro and small enterprises aiming to invest in solar energy installations. In a statement released on Tuesday, Tata Power Renewable Energy announced this collaborative effort, which provides collateral-free loans between Rs 10 lakh to Rs 2 crore for eligible MSEs.

The loans, pending credit approval from the bank, require a 20 percent margin and promise competitive interest rates, with repayment terms extending up to seven years. This initiative is aimed at reducing operational costs for MSEs while fostering their contribution to the green energy transition, as highlighted by Deepesh Nanda, CEO & MD of Tata Power Renewable Energy.

This strategic partnership is a part of a broader trend, where various lenders are collaborating with solar companies to offer finance options for solar projects across commercial, industrial, and residential sectors. Most recently, Solex Energy aligned with the State Bank of India to provide up to Rs 10 crore in solar financing for commercial, industrial, and institutional clients.

(With inputs from agencies.)