Banks asked to maximise number of loans for solar water heaters

New Delhi, Nov 2 (UNI) The Government has asked the banks and the financial institutions to advance maximum number of loans to enable people to install solar water heaters in view of the coming winter season.

The Indian Renewable Energy Development Agency organized an interaction with banks and financial institutions on behalf of the Ministry of New and Renewable Energy here today to discuss the progress made by them on interest subsidy scheme on solar water heating systems being implemented by the banks.

The banks were suggested to take various measures which included easy availability of loans to the users at effective interest rate of 2, 3 and 5 per cent, making loan procedures simpler, tie ups with manufactures/suppliers for easy availability of loans and , organizing adequate publicity and training at branch level etc.

It was noted in the meeting that the volume of business which was being done by bank under the interest subsidy scheme of the Ministry was somewhat low when compared to the total business being done in this sector which reached Rs 400 crore during 2006-07.

The meeting was attended by around 50 officials from 16 banks a few state nodal agencies and the industry.

As many as 28 banks are presently participating in implementing the programme. Loans to the users are available at 2 per cent rate of interest for domestic systems, 3 per cent for institutional and 5 per cent for commercial and industrial systems.

UNI