Indian Economy News

Axis Bank launches Rooftop Solar Finance for MSMEs

Axis Bank has introduced a new financing solution named Rooftop Solar Finance, which will enable micro, small, and medium-scale enterprises (MSMEs) to switch to solar power. The idea is straightforward to make rooftop solar power financing accessible and manageable so that MSMEs can reduce their energy bills and increase their financial sustainability. MSMEs can avail collateral-free loans ranging from Rs. 10 lakh (US$ 11,111) to Rs. 2 crore (US$ 222,222) with flexible repayment tenures of 4-7 years. This will enable MSMEs to set up rooftop solar power systems without affecting their balance sheets or working capital cycles. The idea is to reduce operating expenses, give MSMEs better control over their energy spending, and make their sustainability more sustainable in the long run. The new financing solution will be offered across the country through Axis Bank’s branch network.
To make the transition to solar power smoother, Axis Bank has partnered with the leading Original Equipment Manufacturers (OEMs) and a Technology Partner. The partnership will give MSMEs complete visibility into system costs, savings, and implementation timelines. This will enable MSMEs to assess the financial and operational advantages of solar power before proceeding with the investment, which will increase investor confidence in solar power projects. With the new solar finance solution for MSMEs, Axis Bank is contributing to the energy transition in India while also enabling MSMEs to reduce their carbon footprint and become more cost-efficient.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.