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Welcome to Andhra Bank

About the scheme

This is a scheme of Ministry of Non-conventional Energy Sources (MNES) Government of India, New Delhi for promoting use of Solar water heating systems and Solar Cookers in the Country. This scheme is being implemented as Soft Loan scheme for Solar Water Heaters (SWH) under the Interest Subsidy. In our Bank, it is named as Surya Sakthi scheme.

Eligible Systems and Suppliers

Under the scheme of MNES, soft loans are provided by our Bank for installation of / purchase of

Solar Water Heaters based on Flat Plate Collectors(FPC based SWH)
Solar Water Heaters based on Evacuated Tube Collectors(ETC based SWH) &
Solar Cookers

The FPC based SWHs to be financed must utilize BIS (Bureau of Indian Standards) approved Solar collectors. The suppliers of ETC based SWHs are approved by the Ministry. The up to date list of BIS approved manufacturers of FPCs and approved suppliers of ETC based SWHs are enclosed as Annexure-I. Such updated list can also be had from the Web site www.mnes.nic.in of MNES.Systems supplied by the following are eligible for financing.

Manufacturers of BIS certified collectors
Business associates/authorized dealers of such manufacturers, on production of a letter from the manufacturers.

It is informed by MNES that a model Regulation/Building Bye-laws for the installation of solar assisted water heating systems in certain categories of buildings has been circulated by the Ministry of Urban Development to all the State and Union Territory Governments with a request to advise their local bodies to incorporate in their existing building bye-laws to make it mandatory for several categories of buildings including residential flats of certain minimum plinth area to have solar water heating system.

Terms and Conditions for sanction of loans to Consumers under SOFT LOAN SCHEME.

Solar Water Heaters

Definition	This is a solar system to heat water up to a temperature of 60-80 Degrees Centigrade . It consists of a collector to collect solar energy and an insulated storage tank to store hot water. These systems be either a Flat Plate Collector (FPC based SWH) or Evacuated Tube Collector (ETC based SWH). The system is normally mounted on the roof top or adjacent land.
Capacity	No capacity limit(loans can be extended irrespective of liters per day (lpd ) capacity of the system)
Approved suppliers	Systems supplied by suppliers with BIS approved solar collectors / approved by the MNES as the case may be. The list will be updated periodically by MNES and branches can log on to the website of MNES www.mnes.nic.in. for latest information.
Maintenance guarantee	Suppliers will be responsible for maintenance of the systems for 5 years and maintenance cost will form part of unit cost to be financed by the Banks as per above guidelines.
Implementation period	The scheme will be in operation up to 31.03.2010 and continuation of the scheme shall be informed by Head office from time to time.
Loan amount	85% of the ex-factory/Ex-show room cost of the system

Who can avail finance

Eligibility
i) Employees of Central/State Government, Public sector undertakings
ii) Salaried employees with confirmed service of 5 years and take home monthly salary of not less than Rs.2000/- after meeting the proposed loan installment.
iii) Professional and self employed persons with Annual net income of Rs.60000/- as evidenced by Income tax return or Chartered Accountants certificate and supported by satisfactory P&C from their BankersIn addition to the above, any individual, Institution non commercial organization or commercial organizations including Hotels, hospital etc., are also eligible for finance.

Note : End users (other than individuals) have to give an undertaking that no depreciation allowance will be claimed under Income Tax rules)

Rate of interest

A)	Interest to be debited to the loan account by the Bank	12.50% p.a. (fixed)
B)	Ultimate interest to be charged to the borrower	Domestic 2 %, Institutional 3%, Commercial 5%
C)	Interest subsidy to be claimed from IREDA	A-B

Repayment	Maximum period of 5 years
Processing and other service charges	To be levied as applicable to consumer durable loans.
Penal rate of interest	@ 2% over and above the stipulated interest rate for defaulted loans for the defaulted installments/amount.
Security	A) Hypothecation of solar water heaters and its accessories financed by the bank. B) Suitable guarantor / co obligation good for the loan amount and adequate approved securities as collateral.
Insurance	The unit should be insured for full value and for all possible risks

COST STRUCTURE OF SYSTEMS

Upper limit of cost of solar water heating systems to be financed by Banks ( for calculating loan amount). The cost up to only 5000 liters capacity been shown. Costs of higher capacity systems can be calculated judiciously by the branches based on the number of collectors used.

SOLAR WATER HEATERS BASED ON FLAT PLATE COLLECTORS (FPC BASED SWH)

System with collector area	Approximate capacity	Upper Cost Limit (In Rs.)
1 No. Of Collector system ( 2sq.mt. approx)	100 liters	20,000
2 Nos. Of Collector system ( 4sq.mt. approx)	200 liters	38,500
3 Nos. Of Collector system ( 6sq.mt. Approx )	300 liters	55,000
4 Nos. Of Collector system ( 8 sq.mt. Approx )	400 liters	71,500
5 Nos. Of Collector system ( 10 sq.mt. Approx )	500 liters	88,000
2 Sq.m. per 100 LPD	600 liters to 2000 liters	16,000 for each collector
2 Sq.m. per 100 LPD	2100 & above liters	13000 per collector



The cost indicated above includes the cost of collector, insulated hot water storage tank, systems pipings, instrumentation, controls etc. The cost also includes maintenance responsibility of the system by the manufacturers for five years. If the no. of tubes are different than given above, the cost and capacity can be calculated proportionately.

Notes:

In terms of capacity :
One Collector system = 2 sq.mt. approximately
One Sq.mt = 50 lpd (liters per day)

SOLAR WATER HEATERS BASED ON EVACUATED TUBE COLLECTORS (ETC) BASED (SWH)

System capacity (Notional)	No. tubes	Storage tank capacity	Upper Cost Limit
50 liters	7		7125
75 liters	11	70-80	10875
100 liters	14	100	13500
200 liters	28	150-175	26250
250 liters	34	200-220	31875
300 liters	40	230-260	37500
400 liters	52	340-370	48750
500 liters	64	400-425	60000
From 600 liters to 2000 liters, 12 tubes per 100 liters. Cost of Rs.905 for each tube.
From 2100 liters & above, 12 tubes per 100 liters. Cost Rs.750 per tube
Costs of higher capacity systems can be calculated on the basis of number of tubes used.

Notes:

Terms of capacity:
One Collector system = 2 sq.mt. approximately
One Sq.mt = 50 lpd (Liters per day)

contact your nearest Branch for more details...

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