Cash, bank loan or vendor finance
Cash avoids interest but uses savings upfront. A bank loan spreads the cost and can preserve emergency funds. Vendor-arranged finance can be convenient, though you still need to identify the actual lender, rate, fees and recovery terms.
The PM Surya Ghar portal can show participating loan products and links with Jan Samarth. A product appearing in a scheme flow does not mean every applicant is approved or that it is the cheapest option for you.
Compare total rupees, not the headline rate
| Item | Question to ask |
|---|---|
| Interest | Is the rate fixed or linked to an external benchmark? |
| Tenure | How many EMIs and what total interest? |
| Fees | Processing, documentation, insurance or inspection? |
| Prepayment | Can you close early without a charge? |
| Security | Is collateral, margin money or a guarantor required? |
| Disbursal | When is the vendor paid and against which milestone? |
Ask for the annual percentage rate or an equivalent total-cost statement. Compare the same loan amount and tenure across lenders.
Plan the subsidy timing
Central assistance is processed after installation, required documents and DISCOM approval. Under the published guidelines, if a scheme-linked loan is used, CFA can first reduce the outstanding loan and any remainder can go to the consumer account.
Do not promise a vendor or lender a subsidy date you cannot control. Keep enough cash for the payment schedule and any delay or correction.
Test the EMI against conservative savings
Use a lower generation case and keep fixed electricity charges in the budget. Solar savings vary by season while the EMI does not. A battery can make the loan much larger without a matching rise in bill savings.
Before borrowing, calculate the EMI, total repayment and how a rate increase would affect a floating loan. Keep the quote, loan agreement, cancellation terms and equipment ownership clear. Use our calculator for the energy case, then compare it with the lender’s written repayment schedule.
Common questions
Does PM Surya Ghar provide a free solar loan?
No. The scheme can connect eligible applicants with financing options, but a loan has lender terms, approval checks, interest and repayment obligations.
Should the subsidy reduce my loan?
The guidelines describe CFA transfer to the loan account when scheme-linked finance is used, up to the outstanding amount. Confirm the exact flow with the portal and lender before signing.
Official sources
Rules and portal processes can change. Check these sources before committing money.