> Financing Norms
Last Updated on : 23/10/2019
Financing Norms

Interest Rate matrix for Sectors w.e.f. 19-11-2018 Onwards




State Sector Borrowers/ CPSUs (Category 'A++' ) [AND] Identified CPSUs [AND] AAA rated Companies

State Sector Borrowers/ CPSUs (Category 'A+' )

State Sector Borrowers/ CPSUs (Category 'A' &'B' ) [AND] Central Sector Borrowers (Other than Identified CPSUs & AAA rated) - New category


Renewable Energy Projects except Biomass and Waste to Energy projects





Biomass and Waste to Energy (WTE) projects






Private Sector Borrower






Roof top Solar






Wind Energy, and Grid Connected Solar PV

9.80 %

10.15 %

10.50 %

10.95 %


Co-generation, Hydro and CSP, Energy Efficiency , Energy Conservation & Solar Thermal /Solar PV Off-Grid, Biomass Power and other sector






Manufacturing (All sectors)

Existing units – 10.80 %

Green Field – 11.00%


LoC for Refinance

Cost of domestic borrowing + 1% to 2% spread

Note :

  1. The above interest rates along with conditions will be effective in case of All new Sanction and loan accounts whose first disbursement date is on or after 19-11-2018.The above interest rates along with conditions will be effective also on all loan accounts from their next reset of interest date on or after 19-11-2018.

  2. Reduction in interest rates over and above the applicable interest rates by 20 bps, 15 bps and 10 bps for Grade –I, Grade- II and Grade-III of external grading’s respectively. (Irrespective of IREDA’s internal grading) Except for State sector borrower / CPSUs. This rebate on account of external rating may continue subject to condition that the borrower shall submit the surveillance rating report every year from the date of first disbursement as per IREDA Rating model.
  3. The prompt payment rebate of 0.15% across all sectors is withdrawn w.e.f. 01-04-2017 in case of all new loan agreements signed on or after 01.04.2017. The said rebate of 0.15%, however, shall continue in the existing loan agreements signed before 01.04.2017 till the next reset date. 

  4. Reduction in Interest rate over and above the applicable interest rates by 25 bps for Repowering of wind energy projects.

  5. Additional Interest @ 0.50% over and above the applicable rate of interest shall be charged till the date of commissioning of the project other than Wind and Solar sector. No additional interest during construction for (i) “Schedule- A, ‘AAA’ rated PSUs (ii) State Sector Borrowers who are engaged in power sector and have successfully implemented not less than 200 MW of hydroelectric projects and implementing Hydro sector projects. The additional interest during commissioning period shall discontinue after commissioning of the project. The date of such discontinuance shall be the date on which the borrower submits the duly certified commissioning certificate for the entire sanctioned capacity of the project to IREDA.

  6. The interest rate shall be subjected to reset on commissioning of the project or 1 year from the Date of first disbursement, whichever is earlier and thereafter every 1 year. In case projects commissioned prior to first disbursement, the first reset will be 1 year from the date of first disbursement. 

 This clause is applicable to all new Loans. Loans for which sanction letter has been issued borrower may be given the option to opt for interest reset of 1 year.

      7 In case of loans sanctioned for manufacturing facilities, no additional interest during the construction period shall be charged.

FINANCING NORMS AND SCHEMES /वित्तपोषण मानक और योजना w.e.f. 29-07-2019
1. Loan against Securitization of Future Cash Flow of Renewable Energy Projects


  1. Bridge loan against GBI Claims Payable to Renewable Energy Developers under MNRE Scheme for Generation Based Incentive (GBI) for grid interactive Wind and Solar power projects

    4.       IREDA to take up the role of lead FI under Consortium/Syndicated   Loans/ Multi banking arrangements by charging Lead Fee.

5.   Loan Scheme for Rooftop Solar PV  Power Projects for Commercial, Industrial and Institutional  Sector.   

      6. IREDA Scheme for discounting of Energy bills.

      7. “Credit Enhancement Guarantee Scheme” for raising Bonds   towards Renewable Energy Projects (Solar / Wind)   

      8. IREDA's New Loan Scheme on Concentrated Solar Thermal               project under GEF-UNIDO-MNRE Scheme 

       9. Policy for financing of Transmission Projects


10IREDA New Scheme  - Financing of Briquettes/ Pellets/RDF manufacturing facilities.


11IREDA New Scheme - financing of Biomass Pellets, Briquettes, RDF Manufacturing Facilities

12.  IREDA New Scheme  - Loan against securitization of future GBI receivables.

13. IREDA New Scheme- Short Term Loan Facility to Govt. Bodies/ Discoms/Transcos/State Owned Trading Companies.