Home loan top-up to finance solar: a case study

At Oorjan, we receive a lot of financing requests. They each have slightly different flavors, since each rooftop owner’s situation is unique. These subtleties are difficult for the consumer to handle directly with financiers. This is where Oorjan’s financing platform proves its usefulness.

Let us look into a recent example.

In May 2016, Oorjan received a request to help finance a project. The end customer required ₹14 lakhs to finance a 20kW residential rooftop PV system in Karnataka. All the pieces of the puzzle were in place, except for financing. The catch? The customer had no collateral to offer other than his primary residence, which was already mortgaged.

Upon receiving the request, we ran a credit check, which showed that the customer (Aman) had good credit. In talking to Aman, we discovered that his existing home loan carried a lower interest rate than we could offer through our residential rooftop product. We advised Aman to work directly with the bank holding his home loan, instead of with us, to take advantage of the better interest rate. Since he had good standing with the bank, he should have been able to top up his home loan to include the cost of the PV project. Unfortunately, the request was denied by the local branch and Aman contacted us again.

We initially requested the bank holding his home loan to support a second charge on the home to finance the rooftop PV project. This request was also denied.

At that point, we worked with Aman to move the outstanding balance on his home loan to another bank (in this case, IDBI). We also got him approval to top up the loan to finance his rooftop system, at a 9.5% interest rate.  We completed the entire process from second contact with Aman to loan sanction in a brisk 7 weeks. During this period, we handled all the paperwork and bank conversations on Aman’s behalf, ensuring a speedy and painless disbursement for Aman.

If you’re looking for a delightful customer experience while exploring all your financing options, Oorjan is the answer. 

Note: Numbers used here are directly from the project, but customer details have been changed to protect their privacy. These solutions may not directly apply in your case. For advice regarding your specific situation, try out our estimator and contact us.

5 thoughts on “Home loan top-up to finance solar: a case study

  1. Good Job Nisha, I also want to setup a 0.5 MW to 1 MW solar power project on my own land. Kindly guide me if possible as i am new to solar.

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      1. Hello Mr.Ishwar –
        Thanks for contacting us.
        Unfortunately we cannot help with land mounted solar and financing. We focus exclusively on rooftops and for self consumption systems.

        Regards,
        Team Oorjan

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  2. Hello Team Oorjan,

    Yours is a nice blog. However, The FAQ link isn’t working. And there is “no contact us” that I could see. I would like to know what is the status of solar net metering in West Bengal. Please guide me to a good source. Thanks!

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    1. Dear Mr. Jain –

      I’m sorry you had trouble with the FAQ link. If you’re looking for specific questions and answers, please try: http://www.oorjan.com/faq/design

      You can generate a quote for your home or business by clicking the Orange “click for solar quote” button that you see from anywhere on our site.

      We have not yet published a detailed article on West Bengal, but you may like to check this link which includes links to published policies for West Bengal: http://www.bijlibachao.com/solar/grid-connected-solar-pv-rooftop-system-india-home-panel-subsidy-cost.html

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