What is the interest rate of the KUSUM Yojana loan?
Introduction :
With the rising costs of electricity and diesel in agriculture, the KUSUM Yojana loan has emerged as a lifeline for farmers seeking sustainable alternatives. This loan helps beneficiaries install solar pumps or generate renewable energy under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM). But what’s the actual interest rate? Who can apply? And how do you access the loan? Let’s break it down step-by-step.
What is the PM Kusum Scheme?
The PM Kusum Scheme aims to promote solar energy adoption in Indian agriculture. It offers a 60% subsidy, 30% bank-financed loan, and only 10% upfront cost for farmers. The KUSUM Yojana loan covers that 30% financing portion, helping users afford solar equipment through simple and accessible credit options.
What is the Process to Avail Loan Under PM Kusum Yojana?
Here’s how you can apply for a KUSUM Yojana loan:
1. Register on the official portal – Such as kusum mahaurja com registration form or mnre gov in solar pump registration.
2. Choose your component – A (solar plant), B (standalone pump), or C (grid-connected pump).
3. Upload documents – Aadhaar, land ownership proof, bank details, and electricity bill.
4. Loan linkage – Selected applicants are guided to partner banks or financial institutions for the sanctioned Yojana loan.
5. Subsidy adjustment – The bank manages the subsidy and disburses the 30% loan yojana amount.
Partner banks may include SBI, NABARD, and other cooperative institutions.
What is the Interest Rate of the KUSUM Yojana Loan?
The KUSUM Yojana loan typically carries an interest rate of 4% to 7% per annum, depending on the bank, applicant’s credit profile, and loan amount. Since it’s backed by the government, rates are significantly lower than commercial loans. Interest may also vary if you’re applying via specific state portals like mahaurja kusum registration or schemes such as modi yojana loan for renewable infrastructure.
How Does PM Kusum Yojana Contribute to the Growth of the Indian Agriculture Sector?
The scheme supports:
- Reduced diesel dependency and operational costs
- Increased crop yield with consistent water supply
- Extra income by selling surplus solar energy to the grid
- Long-term savings through government subsidy and affordable loan yojana terms
With solar pump yojana access, farmers gain reliable irrigation, improving productivity and reducing vulnerability to power cuts.
What are the Eligibility Criteria and Documents Required to Apply for the Scheme?
Anyone applying for a KUSUM Yojana loan must:
- Be an Indian citizen
- Own or lease agricultural land
- Provide Aadhaar card, bank passbook, electricity bill (if applicable), and land records
Online application is available through portals for apply kusum yojana, emudra loan, or pradhan mantri mudra yojana online apply method, depending on state support systems.
What are the Different Components or Models Under the PM Kusum Yojana?
- Component A – Farmers, cooperatives, or groups install grid-connected solar power plants (up to 2 MW).
- Component B – Individual farmers install standalone solar pumps (up to 7.5 HP).
- Component C – Existing grid-connected electric pumps are solarised.
Depending on the component, subsidy, KUSUM Yojana loan, and installation processes may vary.
Conclusion :
The KUSUM Yojana loan is more than just a credit facility—it’s a pathway to energy independence and agricultural growth. Whether you’re applying for a solar pump or setting up a renewable energy project, the loan helps bridge the affordability gap. With low interest rates and a simple process, farmers across India are switching to solar. Begin your application today and take the first step toward a more sustainable future.
Key Takeaways :
- The KUSUM Yojana loan helps cover 30% of solar pump or plant costs after subsidy.
- Interest rates range from 4% to 7%, making it highly affordable for farmers.
- Application is done via portals like mnre gov in solar pump registration or apply kusum yojana.
- The scheme promotes clean energy, reduces irrigation costs, and ensures consistent water supply.
- Documents like Aadhaar, land proof, and bank passbook are mandatory for loan approval.
FAQs
What is the maximum loan amount for PM-KUSUM?
Loan amount varies with component and project size. For solar pumps, banks can finance up to 30% of the total cost.
Farmers, cooperatives, FPOs, panchayats, and rural landowners.
Cost depends on pump capacity and location. A typical 5HP solar pump may cost ₹3–4 lakh before subsidy.
Subsidy of 60%, low-interest loans, reduced power bills, and increased reliability of irrigation.
Schemes like mudra yojana, pm mudra, pm svanidhi yojana, and solar kusum offer subsidised credit for various sectors.
