Indian Overseas Bank Ref. No.

: MASTER/ 26 /2023-24
Central Office Date : 04.03.2024
763, Anna Salai Issuing Dept: Retail Banking
Chennai – 600 002 Division
To all Indian Branches, Regional Offices & Other Offices

MASTER CIRCULAR
IOB SURYA SCHEME
IOB HL SURYA SCHEME

PREAMBLE:

We invite attention of the Branches and Regional Offices to Circular Ref. No.
ADV/247/2012-13, dated 08.10.2012 on IOB Surya Scheme, issued by Marketing
and Development Dept., and Circular Ref. No. ADV/304/2012-13, dated
16.02.2013 on making available ‘IOB Surya Scheme’ to Staff Members.

Hitherto our Bank is having only one scheme i.e., IOB Surya scheme to finance
Solar Entergy Equipment. However, the scheme did not have provision to
finance Grid Connected Rooftop Solar System.

India has committed to increase the share of installed capacity of electric

power from non-fossil-fuel sources to 40% by 2030. Solar energy is one of the
main sources to accomplish the target of 40% of electric power from non-fossil-
fuel. Government of India has set the target of achieving 100 GW of solar
power capacity in the country of which 40 GW to be achieved from Rooftop
Solar (RTS).

Govt. of India has launched “PM – SURYA GHAR: MUFT BIJLI YOJANA”. Under
the scheme GoI is providing subsidy for installation of Grid Connected Rooftop
Solar System (RTS).

In view of the growing requirement and demand for clean energy resources,
we advise having modified our IOB Surya Scheme and introduction of new
scheme - IOB HL Surya for new and existing Housing Loan Borrowers as a
bundled scheme.

OPERATIONAL GUIDELINES:

Under IOB Surya Scheme any borrower be it Individual or Non-Individual can

avail loan for Solar Equipment including Off Grid/Grid Connected Rooftop
Solar System and IOB HL Surya Scheme has been devised only for new and
existing Housing Loan Borrowers to avail loan for Grid Connected Rooftop Solar

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System. Features of modified IOB Surya Scheme and New Scheme-IOB HL Surya
are attached as Annexure I & II and Brief details of “PM – SURYA GHAR: MUFT
BIJLI YOJANA” is attached as Annexure III to this circular. Branches /ROs are
advised to be guided accordingly.

CONCULSION:

In view of the above and to improve green credit portfolio of the Bank,
Branches are advised to create awareness about the scheme among the new
and existing customers especially Housing Loan segment and canvass more
business under loans for installation of Grid Connected Rooftop Solar System.

Branches/Regional Offices are advised to take benefit of the modified IOB

Surya Scheme and New Scheme i.e., IOB HL Surya Scheme to increase business
under this segment without compromising on quality of credit.

THIRUMURUGAN S Digitally signed by THIRUMURUGAN S

Date: 2024.03.04 19:57:14 +05'30'

(THIRUMURUGAN S)
DEPUTY GENERAL MANAGER & HOD

Encl: As above

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 Annexure-I

S. Norms Details
No.
1 Name of IOB Surya
Scheme
2 GL Code GL Code-33617- Scheme Code-SURYA
and Scheme
Code
3 Purpose I. Financing for installation of Grid Connected Rooftop Solar
System (RTS) on rooftop or open contiguous land for
captive consumption and/or feeding into the grid under
agreement with respective Electricity Distribution
Company (DISCOM).
II. Purchase of Off Grid Solar Equipment:
a. Solar Heaters
b. Home/Indoor Lighting Systems
c. Off Grid Roof Top Solar system
4 Target Scheme A: All Individual Borrowers subject to satisfaction of
Segment scheme norms including Staff Members in confirmed service.
Scheme B: Institutions like Educational Institutions, Hospital,
Hotels/Restaurants etc. subject to satisfaction of scheme
norms.
CIC Score: For Individuals: CIBIL/CRIF Score-680 and above
(NTC -New to Credit Borrowers also eligible)
For Non-Individuals: Satisfactory CIC Report
5 Quantum Term Loan:
and Type of Scheme-A: Loan to Individual Borrowers: Upto Rs. 20.00 Lakhs
Loan (Loan to Individual Borrowers upto Rs. 10 Lakhs shall be treated
under Priority Sector Lending as per RBI guidelines)
Scheme-B: Loan to Non-Individual Borrowers: Upto Rs. 10.00
Lakhs
(Loans above Rs. 10.00 Lakhs may be considered under IOB
Tejas Scheme subject to scheme norms)
6 Age Norms Individual Borrowers:
Entry Age: Minimum 21 Years and maximum entry age 60
years
Exit Age: 65 years
RLCC shall be able to relax the norms by 5 years in entry/exit
age subject to min. entry age remaining 21 years. For
considering Loans repayable beyond age of 60 years for the
prime borrower whose income is considered for repayment,
repayment capacity to be ensured.
Non Individual Borrowers: Age Norms not applicable.

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7 Interest Individual Borrowers:
Rates
For RTS upto 3 kW: RLLR-2.35% i.e., 9.35-2.35=7.00% presently

For RTS above 3 kW and other solar equipment:

CIC Score Interest Rate

750 & above 9.35 (RLLR)+0.00 (SP) 0.00 (RP)=
9.35% presently
From 700 to 749 9.35 (RLLR)+0.40 (SP) 0.25 (RP)=
10.00% presently
From 680 to 699 9.35 (RLLR)+0.40 (SP) 0.75(RP)=
10.50% presently

Non-Individual Borrowers: 9.35(RLLR)+0.40(SP)0.75 (RP)=10.50%

Rate of Interest on Fixed ROI basis: 13%

8 Discretionary Branch Level: Rs. In Lakhs
Powers Branch Manager Existing Revised
in the Scale of
Scale-I (Asst. Mgr.) 1.50 1.50
Scale-II (Manager) 3 5
Scale-III (Sr. Mgr.) 5 8
Scale-IV (CM) 8 15
Scale V (AGM) 8 20
Scale-VI (DGM) 8 20

RO Level Rs. In Lakhs

Name of Existing Revised
Committee
RLCC (SRM/CRM) 10 20
9 Income For Loans for RTS upto 3kW: No Minimum Net Annual Income
Norms eligibility criteria. However, repayment capacity to be
assessed.
For Loans for RTS above 3 kW: Minimum Net Annual Income
shall be Rs. 3 Lakh.

For Salaried borrowers: 2 Years ITR and/ or 3 months Salary Slip.

Average salary of last 3 months & deduction as per latest
salary slip to be taken for assessment. Employment particulars
to be obtained and verified.
For Self Employed and Businessman Category: 2 Years ITR to
be obtained. Average income to be taken for assessment
purpose.
Borrowers who are not under the category to file mandatory
ITR may submit income proof issued by Revenue Authorities.

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 Repayment capacity to be examined by the Branch carefully
for such borrowers.

For Non-Individual Borrowers: Assessment shall be based on

average cash profit (Net Profit after Tax plus Depreciation) for
the past 2 years as per their ITR.
For Loans for other solar equipment: No Minimum Net Annual
Income criteria, however THP norms to be complied.

10 Take Home Branches are empowered to sanction loan by complying THP

Pay Norms Norms at 50% of Gross Monthly Income for customers and at
40% THP for Staff members.
However, RLCC is empowered to consider relaxation in THP on
case-to-case basis as under:

Gross Monthly Income Take Home Pay Norms %

Upto Rs. 99000/- 40
Rs. 1 Lakh to below Rs. 5 Lakhs 30
Rs. 5 Lakhs and above 15
For Non individual Borrowers: Assessment shall be based on
average cash profit (Net Profit after Tax plus Depreciation) for
the past 2 years as per their ITR. Income should be sufficient to
meet EMI obligation.
11 Security For Rooftop Solar System:

Prime: Hypothecation of RTS equipment

Collateral:
For Loan for RTS upto 10 kW: Nil
For Loan for RTS above 10 kW: Mortgage/Extension of
House/Flat/Plot or Liquid Security in the form of Life Insurance
Policy, NSC, KVP/Term Deposit /SGB etc. to the extent of 100%
of loan amount.

For Loans for other Solar Equipments:

Prime: Hypothecation of Equipment purchased.
Collateral:
For Loans upto Rs. 1 Lakh: Nil
For Loans above Rs. 1 Lakh: Mortgage of House/Flat/Plot or
Liquid Security in the form of Life Insurance Policy, NSC,
KVP/Term Deposit/SGB etc. to the extent of 100% of loan
amount.

(Wherever collateral security in the form of residual value of

existing HL/Other property is proposed, LTV norms for existing
exposure as per extant guidelines to be complied.)

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12 Margin For Individual Borrowers:
For RTS upto 3 kW: 10% of cost of Equipment
For RTS above 3 kW: 20% of cost of Equipment
For other Solar Equipments: 20% of cost

For Non-Individual Borrowers: 20% of cost of Equipment

13 Processing For RTS Upto 10 kW: Nil
Charges Above 10kW and Other Solar Equipment: 0.40% of Loan
Amount
Processing charges, subject to maximum Rs. 5000/-. GST as
applicable to be collected.
14 Holiday Holiday Period: In case of installation of RTS system,
and repayment to start after 6 months of disbursement or
Repayment installation and commissioning of RTS system whichever is
earlier. Interest during holiday period to be serviced.
For all other purposes, repayment to start from the next month
of disbursement of loan.
Loan to be repaid in max. 120 EMIs. (Excluding holiday period)
No Minimum Loan Period.

15 Insurance Prime & Collateral Security to be insured for the applicable

risks.
16 Subsidy A. Wherever subsidy is available, the same shall be claimed as
per procedure of the respective subsidy scheme. Guidelines
issued by the respective subsidy provider i.e. Government or
Agency shall be adhered to in this regard.
B. In case of availability of any subsidy: since subsidy schemes
are available for a limited period and subject to certain
terms and conditions, the customer to be advised to check
the details and eligibility criteria with the respective
implementing agency before proceeding for loan and
customer shall submit necessary documents to the
respective implementing agency where subsidy is provided
by them directly.
C. Wherever, subsidy is to be claimed through the Bank,
customer shall provide all necessary documents. An
undertaking to this effect to be obtained from the customer.
D. All loan application involving subsidy shall be routed
through/received through JanSamarth Portal mandatorily.
E. Central Financial Assistance/Subsidy under RTS by Central
Govt.: Presently, Govt. of India is providing central financial
assistance/subsidy to promote solar power generation by

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 installation of Rooftop Solar system to achieve goal of clean
energy.
Presently Subsidy for Grid Connected RTS for residential users
is as under:

PM – SURYA GHAR: MUFT BIJLI YOJANA

Subsidy for Residential Households
A. Rs. 30,000/- per kW up to 2 kW, Rs. 18,000/- per kW for
additional capacity up to 3 kW. Total Subsidy for systems
larger than 3 kW capped at Rs 78,000/-
B. Suitable Rooftop Solar Plant Capacity for households

Average Monthly Suitable Subsidy Support

Electricity Rooftop Solar
Consumption (units) Plant Capacity
0-150 1 – 2 kW Rs 30,000 to Rs
60,000/-
150-300 2 – 3 kW Rs 60,000 to Rs
78,000/-
>300 Above 3 kW Rs 78,000/-

Under this subsidy scheme following shall be applied:

➢ In principle Sanction: The applicant will be provided In-
Principle sanction by Jansamarth Portal based on Self
Declaration. Final Sanction to be based on verification of
relevant documents and assessment.
➢ A copy of Latest Electricity Bill to be obtained.
➢ Disbursement to be made directly to the Vendor/EPC
contractor after submission of all required feasibility
reports as mandated by MNRE.
➢ Disbursement shall be Loan Amount plus Borrower’s
Margin & Subsidy*
➢ Subsidy shall be claimed by the Borrower providing Loan
Account Number for credit of subsidy into the Loan
Account.
* In case of any subsequent change, it will be advised
separately.
17 Deviations HLCC(GM) is empowered to permit deviations in the scheme
norms.
18 Other Terms a. Branches to ensure to conduct Pre and Post Sanction
and Inspection.
Condition b. Wherever RTS is proposed to be installed on Roof Top of
House Property, financing for Rooftop Solar System shall
be considered only in case of Roof Top ownership rights
are available with the borrower or alternate space
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 available under ownership of borrower for installation of
RTS. Flat or other house property where root rights are not
available with the borrower shall not be eligible for
finance for Roof Top Solar System.
c. All Confirmed Staff members are also eligible for the
loan. The loan to staff shall be sanctioned by concerned
RLCC. IR/Vigilance clearance to be obtained before
sanction of loan to the Staff Members.

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 Annexure II

S. Norms Details
No.
1 Name of IOB HL Surya
Scheme (Bundled scheme for New and Existing Housing Loan Borrowers)
2 GL Code GL Code-33248 Scheme Code: RHLSR
and Scheme
Code
3 Purpose Finance for Installation of Grid Connected Roof Top Solar System
on rooftop or open contiguous land.
4 Target All the individual borrowers availed/availing Housing Loan shall be
Segment eligible to avail loan to install Grid Connected Rooftop Solar
System subject to scheme norms
CIC Score: For Individuals: CIBIL/CRIF Score-680 and above (NTC -
New to Credit Borrowers also eligible)

5 Quantum Maximum Loan Amount Rs. 20.00 Lakh as Term Loan

and Type of (Loans upto Rs. 10 Lakhs shall be treated under priority sector
Loan advances)
6 Age Norms As applicable to Respective Housing Loan Scheme
7 Interest Interest Rate:
Rates
For RTS upto 3 kW: RLLR-2.35 i.e. 9.35-2.35=7.00% presently
For RTS above 3 kW:
Floating ROI : Linked to rate of interest for Housing Loans based on
rating. In case of existing Housing Loan, Rating is not available,
Rating to be done and ROI shall be applied accordingly.
Fixed ROI : 13%
Processing Charges-waived for the bundled product.
8 Discretionary
Powers Branch Level

Branch Existing Delegated Powers for

Manager in the Delegated sanction of IOB HL Surya
Scale of power for Loan (20% of HL limit) (Rs.
sanction of in Lakhs)
Housing Loan
(Rs. in Lakhs)

Scale-I (Asst. 20 4
Mgr.)
Scale-II 30 6
(Manager)

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 Scale-III (Sr. Mgr.) 60 12

Scale-IV (CM) 100 20(Max. Scheme Limit)

Scale V (AGM) 250 20(Max. Scheme Limit)

Scale-VI (DGM) 300 20(Max. Scheme Limit)

RO Level:

In case of proposal exceeding delegated powers of the Branch

Head, RLCC SRM/CRM shall have the powers to sanction loan upto
scheme limit i.e., Rs. 20.00 Lakhs.

9 Income As applicable to respective Housing Loan Scheme.

Norms
However, for Loans upto 3 kW, No Min. Net Annual Income is
required.
10 Take Home As per respective Housing Loan Scheme.
Pay Norms
11 Security Prime: Hypothecation of all the Equipment of Roof Top Solar
System financed.

Collateral: Undertaking for Extension of Mortgage.

12 Margin 10% of the Cost of RTS
13 Processing Waived
Charges
14 Holiday Holiday period upto 6 months or completion of installation and
and commissioning of RTS system whichever is earlier. Interest during
Repayment holiday period to be serviced.
Maximum Repayment period shall be in line with the Housing Loan
or 5 Years (excluding holiday period of RTS loan) whichever is
higher. Borrower may opt for lower repayment period also subject
to compliance of THP norms.
15 Insurance Prime & Collateral Security to be insured for the applicable risks.

16 Subsidy A. Wherever subsidy is available, the same shall be claimed as per

procedure of the respective subsidy scheme. Guidelines issued
by the respective subsidy provider i.e. Government or Agency
shall be adhered to in this regard.
B. In case of availability of any subsidy: since subsidy schemes are
available for a limited period and subject to certain terms and
conditions, the customer to be advised to check the details and
eligibility criteria with the respective implementing agency
before proceeding for loan and customer shall submit necessary

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 documents to the respective implementing agency where
subsidy is provided by them directly.
C. Wherever, subsidy is to be claimed through the Bank, customer
shall provide all necessary documents. An undertaking to this
effect to be obtained from the customer.
D. All loan application involving subsidy shall be routed
through/received through JanSamarth Portal mandatorily.
E. Central Financial Assistance/Subsidy under RTS by Central Govt.:
Presently, Govt. of India is providing central financial
assistance/subsidy to promote solar power generation by
installation of Rooftop Solar system to achieve goal of clean
energy.
Presently Subsidy for Grid Connected RTS for residential users is as
under:

PM – SURYA GHAR: MUFT BIJLI YOJANA

Subsidy for Residential Households
A. Rs. 30,000/- per kW up to 2 kW, Rs. 18,000/- per kW for
additional capacity up to 3 kW. Total Subsidy for systems
larger than 3 kW capped at Rs 78,000/-
B. Suitable Rooftop Solar Plant Capacity for households

Average Monthly Suitable Subsidy Support

Electricity Rooftop Solar
Consumption (units) Plant Capacity
0-150 1 – 2 kW Rs 30,000 to Rs
60,000/-
150-300 2 – 3 kW Rs 60,000 to Rs
78,000/-
>300 Above 3 kW Rs 78,000/-

Under this subsidy scheme following shall be applied:

➢ In principle Sanction: The applicant will be provided In-
Principle sanction by Jansamarth Portal based on Self
Declaration. Final Sanction to be based on verification of
relevant documents and assessment.
➢ A copy of Latest Electricity Bill to be obtained.
➢ Disbursement to made directly to the Vendor/EPC contractor
after submission of all required feasibility reports as mandated
by MNRE.
➢ Disbursement shall be Loan Amount plus Borrower’s Margin.
➢ Subsidy shall be claimed by the Borrower providing Loan
Account Number for credit of subsidy into the Loan Account.

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17 Deviations HLCC(GM) is empowered to permit deviations in the scheme
norms.
18 Other Terms a. Branches to ensure to conduct Pre and Post Sanction
and Inspection.
Condition b. Wherever RTS is proposed to be installed on Roof Top of
House Property, financing for Rooftop Solar System shall be
considered only in case of Rooftop ownership rights are
available with the borrower or alternate space available
under ownership of borrower for installation of RTS. Flat or
other house property where root rights are not available with
the borrower shall not be eligible for finance for Rooftop Solar
System.
c. All Confirmed Staff members are also eligible for the loan. The
loan to staff shall be sanctioned by concerned RLCC.
IR/Vigilance clearance to be obtained before sanction of
loan to the Staff Members.

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 Annexure-III

“PM – SURYA GHAR: MUFT BIJLI YOJANA”

The Rooftop Solar (RTS) plant is a system installed mainly on the roof of a
building and includes installations on open contiguous land within the area of
premises wherein valid and live electricity connection has been provided by
the concerned Distribution Utilities/Companies (DISCOMS). The Solar power so
generated can then be used either for captive consumption of the premises
or can be fed into the grid and be adjusted in the electricity bill.
GoI has launched “PM – SURYA GHAR: MUFT BIJLI YOJANA”. Under the scheme
GoI is providing subsidy for installation of Grid Connected Rooftop Solar System
(RTS) and has set a target of installation of RTS on 1 Crore Households. Details of
the scheme are as under:

Subsidy for Residential Households

A. Rs. 30,000/- per kW up to 2 kW, Rs. 18,000/- per kW for additional capacity
up to 3 kW. Total Subsidy for systems larger than 3 kW capped at
Rs. 78,000/-
B. Suitable Rooftop Solar Plant Capacity for households:

Average Monthly Suitable Subsidy Support

Electricity Rooftop Solar
Consumption Plant Capacity
(units)
0-150 1 – 2 kW Rs 30,000 to Rs 60,000/-
150-300 2 – 3 kW Rs 60,000 to Rs 78,000/-
>300 Above 3 kW Rs 78,000/-

Under this subsidy scheme:

➢ In principle Sanction: The applicant will be provided In- Principle sanction
by Jansamarth Portal based on Self Declaration. Final Sanction to be
based on verification of relevant documents and assessment.
➢ A copy of Latest Electricity Bill to be obtained.
➢ Disbursement to made directly to the Vendor/EPC contractor after
submission of all required feasibility reports as mandated by MNRE.
➢ Disbursement shall be Loan Amount plus Borrower’s Margin.
➢ Subsidy shall be claimed by the Borrower providing Loan Account Number
for credit of subsidy into the Loan Account.

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The steps involved in the subsidy scheme are as under:

1. The interested person has to visit National Portal for Rooftop Solar (RTS Portal)
on the following webpage: https://pmsuryaghar.gov.in and apply for
Rooftop Solar on the given link in the homepage.

2. After completing the application, the user shall go to “Financing Options”

tab on the top of the RTS portal.

3. Our Bank’s name is displayed in the left side of the panel. User has to click
our Bank’s icon and then click on “Know More” tab.

4. The Applicant will land on our IOB Surya and IOB HL Surya Scheme Page.

5. Then Applicant will enter the details and press the ‘Apply Now’ Tab to go to
“JanSamarth Portal” which is mandatory for availing subsidy linked loans.

6. At JanSamarth Portal, applicant will be shown various Bank offers and

applicant has to select our Bank and upon selection and submission of
application, an in-principal sanction will be generated.

7. The application will reflect under Loan Application Register in Branch

Product.

8. Once the Applicant approaches the selected Branch with the in-principal
sanction, Branch has to select the application in Loan Application Register
and process the loan application as usual and sanction the loan in Finacle.
Post sanction, Branch should updated the status in Loan Application Register
to update the same in Jansamarth Portal.

9. There may be Applicants/Customers who directly approach the Branch

instead of applying through the portal. In such case, Branch to assist the
customer to complete the process as stated above and process/sanction
the loan subject to compliance of extant guidelines and scheme norms.

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