Easy and affordable financing has been one of the barriers for penetration of Solar in the MSME sector in the country. In order to address this challenge, Tata Power and SIDBI have joined hands to design a unique Solar financing solution for the MSME customers helping them switch to rooftop solar without any collateral at an interest rate less than 10%.
This will also be complimented with a quick sanction and disbursement process (within 7 days with disbursement in 4 days). This financing scheme is exclusively for MSME customers of Tata Power for both off-grid and on-grid connections.
Speaking on this partnership, Praveer Sinha, CEO & MD, Tata Power said, "Green Energy has gained momentum in the country in sectors like MSME. We are pleased to partner with SIDBI for an innovative financing solution for our MSMEs customers. This will support and encourage MSME customers to adopt solar energy with affordable financing solution."
Manoj Mittal, Deputy Managing Director, SIDBI said, "Most MSMEs fail to attract developers due to smaller size or inadequate financial worthiness. There is a need to innovate and pay attention to these classes of consumers to activate the next leg of growth in the rooftop solar market. I am sure this scheme will help to address the need for financing for this segment. Partnering with Industry leader Tata Power Solar is certainly going to encourage flow of credit for this national priority."
The company's stock rose by 2.02% to trade at Rs80.85 per piece on the BSE, at around 11:57am.