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Luminous, SIDBI Sign MoU to Offer Up to INR 50 Crore Solar Loans for MSMEs

Luminous Power Technologies has signed an MoU with the Small Industries Development Bank of India (SIDBI) to enable MSMEs to access solar loans of up to INR 50 crore with tenures of up to 10 years.

April 22, 2026. By Mrinmoy Dey

Luminous Power Technologies has announced that the company has signed a memorandum of understanding (MoU) with the Small Industries Development Bank of India (SIDBI). The partnership aims to expand faster access to structured, affordable financing for MSMEs, supporting their green energy transition.

Through this collaboration, Luminous will leverage SIDBI’s strong institutional framework and established focus on MSME financing to simplify access to solar loans for businesses across India, the company stated.

As part of the partnership, MSMEs will be able to avail loans of up to INR 50 crore with flexible repayment tenures of up to 10 years. The offering includes up to 2 percent interest subsidy on eligible loans (up to INR 2 crore), bringing the effective interest rate starting from 6.7 percent. The process is supported by minimal documentation requirements, a fully digital journey, and faster loan approvals with sanctions in as little as 7 days.

Additionally, the partnership enables up to 100 percent project funding, supported by cash collateral in the form of SIDBI Fixed Deposit Receipts (FDRs) and concessional interest rates linked to customers' credit ratings. These features collectively aim to ease capital constraints for MSMEs and accelerate decision-making for solar investments.

With Luminous’ PAN India presence and SIDBI’s dedicated MSME-oriented schemes, the partnership is designed to strengthen access to affordable financing with faster approvals, a key factor in driving solar adoption. The collaboration is expected to enhance on-ground execution by improving access to financing at the last mile, thereby driving greater adoption across businesses.

Luminous operates an integrated solar ecosystem covering manufacturing, installation, digital project management and after-sales service, supported by a nationwide network of over 350 service centres and 24-hour response timelines, the company stated.

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