Luminous Power Technologies has signed a memorandum of understanding (MoU) with the Small Industries Development Bank of India to enhance access to affordable solar financing for micro, small, and medium enterprises (MSMEs) across India.
The partnership aims to accelerate solar adoption by enabling faster and more structured financing solutions. Under the collaboration, MSMEs can avail loans of up to ₹50 crore with flexible repayment tenures of up to 10 years. The offering also includes an interest subsidy of up to 2% on eligible loans (up to ₹2 crore), bringing the effective interest rate down to as low as 6.7%.
The financing process has been designed for ease and speed, featuring minimal documentation, a fully digital application journey, and quick approvals, with loan sanctions expected within seven days.
Additionally, the initiative offers up to 100% project funding, supported by cash collateral in the form of SIDBI Fixed Deposit Receipts (FDRs), along with concessional interest rates linked to the borrower’s credit profile. These measures are intended to address capital constraints and enable MSMEs to make faster investment decisions in solar energy.
Leveraging Luminous’ pan-India presence and SIDBI’s established MSME-focused financing ecosystem, the partnership is expected to improve last-mile access to credit and drive wider adoption of clean energy solutions among businesses.
Luminous noted that the collaboration aligns with its broader strategy to democratize access to solar energy by offering an integrated ecosystem that includes manufacturing, installation, digital project management, and after-sales services. The company supports customers through over 350 service centres nationwide, with 24-hour response timelines and multiple service touchpoints to ensure a seamless experience.
The initiative is expected to play a key role in enabling MSMEs to contribute to India’s clean energy transition and sustainable growth objectives.
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