Union Rooftop Solar Scheme

If you are planning to take loan for installing solar rooftop then Union Roof Top Solar Scheme (URTS) is the best one. This loan is provided by Union Bank of India. The loan is provided for the installation of Grid connected for only residental purpose. In this blog lets look into the eligibility for getting the loan for the installation.

Eligibility for Entitites and Borrowers:

Under the URTS scheme, both resident Indian citizens and non-resident Indians (NRIs), including Persons of Indian Origin (PIOs) and Overseas Citizenship of India (OCI) holders, are eligible. Applicants must own an independent house without an existing loan from any other banks against the said property. The scheme allows individuals to apply singly or jointly with eligible family members, following the guidelines of the home loan scheme.

For new home loan customers, URTS can be sanctioned concurrently with the home loan, with disbursement occurring after property completion and possession. Existing home loan applicants can avail the URTS if they have a satisfactory repayment track record without any overdue payments in the last 6 months.

Age Criteria

Applicants must be a minimum of 18 years old, with the maximum permissible age at the end of repayment set at 75 years for both salaried and non-salaried borrowers. Individuals with a regular source of income after 60 years can be considered for repayment beyond 60 years of age.

Loan Details

The maximum loan amount per individual is 75% of the project cost or Rs. 10.00 lakh, whichever is lower, subject to the borrower’s repayment capacity. Borrowers contribute 5% of the project cost, and subsidies of 40% and 20% are provided for the installation of rooftop solar systems ranging from 3 KW to 10 KW.

Interest Rates

The interest rates are determined based on the loan amount, CIBIL score, and loan-to-value (LTV) ratio. The scheme offers a 5 bps concession for women borrowers if applied along with a home loan.

Moratorium and Repayment: A maximum moratorium period of 6 months or the time taken by the Distribution Company (Discom) for installation, whichever is less, is applicable. The repayment period is set at 20 years in equated monthly installments (EMIs) or the stipulated housing loan period, whichever is earlier.

Security and Guarantee: Primary security involves the hypothecation of rooftop solar assets, while collateral security is required for loans above Rs. 1.00 lakh. The co-applicant or guarantor of the home loan continues for URTS loans above Rs. 1.00 lakh.

Insurance: Borrowers must insure the rooftop solar system with the usual bank clause, and total insurance coverage should be at least 110% of the loan amount.


The Union Rooftop Solar Scheme emerges as a forward-thinking initiative, promoting sustainable energy solutions while providing financial support to individuals. With attractive subsidies and flexible repayment options, this scheme aims to empower homeowners to embrace clean energy practices. For more details, interested individuals are encouraged to contact their nearest branch.

Leave a Reply

Your email address will not be published.