> Financing Norms
Last Updated on : 28/05/2018
Financing Norms

Interest Rate matrix for Sectors w.e.f. 22-01-2018 Onwards

S. No.


Grade I

Grade II Grade III Grade IV


Schedule A,'AAA' Rated PSUs

9.50 %


State Sector Borrowers


9.80% 10.10% 10.35%


LoC for Refinance

Cost of Domestic Borrowing  + 1 % to 2%(Spread)
4    Roof top Solar 9.55% 9.90% 10.20% 10.50%


Wind Energy, and Grid Connected Solar PV

9.55% 10.00 % 10.35% 10.75 %


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


10.60% 11.00% 11.25%


Manufacturing (All sectors) Existing units - 10.60% Green Field - 10.80%

Note :

  1. The above interest rates along with conditions will be effective in case of loan accounts whose 1st disbursement date is on or after 22-01-2018. The above interest rates along with conditions will be effective also, in all loan accounts from their next reset of interest date on or after 22-01-2018.

  2. Reduction in interest rates over and above the applicable interest rates by 25 bps, 20 bps and 15 bps for Grade –I, Grade- II and Grade-III of external grading’s respectively. (Irrespective of IREDA’s internal grading) Except for serial no. 1& 2 of above. 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.
  3. The prompt payment rebate of 0.15% across all sectors is already withdrawn w.e.f 01-04-2017 in case of all new loan agreements signed on or after 01.04.2017.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 commission period  shall discontinue after commission 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. 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. 14-05-2018
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