SBI has made installation of rooftop solar panels mandatory in home loan schemes for residential projects. In such a project, the builder will have to install a solar power system on the roof of the house under construction. This rule is applicable to those who have taken home loan under SBI Green Finance. Know what this scheme is. Read the full news.
State Bank of India (SBI), the country’s largest bank, has made some changes in its home loan rules. SBI has made rooftop solar installation mandatory in home loan plans for residential projects.
In simple language, for such projects the builder will be required to install a solar power system on the roof of the house under construction. This will be applicable to those who have taken home loan under SBI Green Finance.
How many crores of loans were approved in June?
SBI has approved loans worth more than Rs 6.3 lakh crore till June. SBI has outstanding foreign currency loans of $2.3 billion from multilateral institutions like the World Bank, Asian Development Bank and Germany’s KfW.
Ashwini Kumar Tiwari, Managing Director, Risk, Compliance and Stressed Assets, SBI, said that
We are planning to make it mandatory for builders to install rooftop solar if the project is funded from our Green Fund
These loans come with a tenure of 10 to 20 years.
These loans come with tenures of 10 years or 20 years which creates foreign exchange risk for the borrowing banks. Given the risks involved in long-term foreign currency loans, Ashwini Kumar Tiwari urged multilateral banks to allow borrowing banks to hedge their exposures so that green and financial inclusion funding can be more sustainable.
What is this scheme of SBI?
SBI’s Green Finance Scheme aims to promote activities that directly focus on clean climate such as planting trees, construction of bio-toilets, solar lights, lamps, panels etc.
The World Bank began financing “solar roofs” in 2016. On this basis, money is given to the world’s leading companies. Its objective is to connect customers with clean climate campaigns by providing loans.
