Sindh Government Announces Interest-free Solar Loans

After the budget 2024-25 is announced, the Sindh Government has taken measures to provide interest-free solar loans to middle social class residents of Sindh. The Minister for Energy, Mr. Nasir Hussain Shah declared this in a meeting held at Eid-ul-Azha at his residence in Karachi.

Highlighting major issues faced by the residents of Sindh, especially related to energy consumption and distribution, Mr. Shah detailed the government’s efforts to resolve the energy crisis and the soaring electricity prices in Pakistan. 

The Interest-free Solar loans Scheme is a relief scheme for people who cannot afford installing solar systems in their households and are still worried about the heavy amount of electricity bills. The Loan scheme will provide them interest free solar loans and the interest will be covered by the Sindh government over the loans sanctioned for solar system installation. The Govt. of Pakistan is putting the bricks together towards settling the energy crisis in Pakistan through different energy schemes.

Highlights of Interest-free Solar Loans

• A total of Rs. 5 Billion from the budget 2024 has been allocated to this interest-free solar loans project where the Sindh Govt, announces that it will distribute 200,000 solar panels. The government will provide a loan for 80% of the cost and consumers will pay 20%.
• Government also plans to build solar parks and mini grid stations across Sindh.

How to Apply for Interest free Solar loan through Sindh Bank

The process to apply for Interest free solar loans is simple. The minimum requirement of documentation and quick processing time are two major highlights of the loan project. The Solar loan project provides both on-grid and off-grid solar solutions.

Eligibility Criteria

For Interest-free solar loans to be successfully sanctioned, ere is an eligibility criteria

• The applicant must be a citizen of Pakistan
• The applicant should be the owner of the property where the solar system needs to be installed.
• The applicant should be verified for any other loans acquired through ECIB/CCIB
• The Applicant should have a bank account with Sindh Bank
• If the applicant is salaried, he should not exceed 60 years of age at the maturity of the loan.
• If the applicant is a business owner, he should not exceed 65 years of age at loan maturity.

Interest Free Solar Loan Details

• Salaried Individuals: Rs. 100,000 to Rs. 5,000,000
• SEP/SEB/Agri Borrowers: Rs. 100,000 to Rs. 20,000,000
• SME Borrowers: Up to Rs. 100,000,000, based on financial strength.
• Financing Tenor: Up to 7 years.
• Down Payment: Minimum 15% of the solar system cost.
• Repayment Terms: Monthly, quarterly, or semi-annual installments.
• Solar System Capacity: From 1KW to 400KW.

Required Documents for Interest free solar loan

• Filled and signed application form.
• Valid CNIC of applicant and co-applicants.
• Recent photographs of applicant and co-applicants.
• Last paid utility bills of the premises.
• Borrower’s Basic Facts Sheet.
• Account statement of the last year.
• Last 3 months’ salary slips for salaried individuals.
• Pension card/certificate for pensioners.
• Biometric verification.
• Business-related documents for SMEs.
• Agricultural documents for agri borrowers.
• Any other documents as required.