Uttar Pradesh SLBC Directs Banks To Accept Nationally Approved Solar Vendors For PM Surya Ghar Loan Approval

The State Level Bankers’ Committee (SLBC) of Uttar Pradesh issued an important directive to all member banks and Lead District Managers regarding loan processing under the PM Surya Ghar: Muft Bijli Yojana (PMSG-MBY). The notice, led by Deputy General Manager Nidhi Kumar, addresses a recurring problem in which bank branches were rejecting loan applications submitted through the Jan Samarth portal.

These rejections had primarily occurred because the solar vendors chosen by applicants were not listed on the local Distribution Company’s (DISCOM) approved vendor list. However, the SLBC clarified that many of these vendors are officially registered and approved at the multi-state or national level on the PM Surya Ghar national portal. The committee emphasized that vendors appearing on the national portal are valid for the scheme, regardless of whether they are included in local lists.

To address this issue, the SLBC instructed all banks to immediately share a verification link with their branch networks. Bank officials are now required to use this national database to verify vendor credentials during the loan approval process. This step is aimed at preventing unnecessary rejections of applications and ensuring that the scheme is implemented efficiently across Uttar Pradesh.

The notice comes as part of ongoing efforts to streamline the financial approval process for solar installations under the scheme. Previous communications sent in October and early December 2025 had already highlighted the need to simplify procedures and improve coordination between banks and vendors.

In addition to the directive being circulated among banks, copies have been forwarded to the Director of UP NEDA and the regional office of REC Limited in Lucknow. This is intended to maintain administrative alignment and support the smooth implementation of the scheme at all levels.

The PM Surya Ghar: Muft Bijli Yojana aims to provide solar energy solutions to households at minimal or no cost, encouraging renewable energy adoption across the state. By ensuring that all approved vendors, whether listed locally or nationally, are recognized, the SLBC seeks to remove bottlenecks in loan processing. This approach is expected to accelerate the installation of solar systems and promote energy access in rural and semi-urban areas of Uttar Pradesh.

The committee’s directive marks a significant step toward addressing operational challenges in the scheme, reinforcing the use of national-level resources to support local implementation, and ensuring that households benefit from solar energy without undue delays in financial approvals.