Saturday, July 19, 2014: Tata and Bajaj Finance have come together for the initiative.
Tata Power Solar, which is the Indian solar manufacturer and developer, is all set to launch a nationwide initiative, which may open the access to solar finance for residential use. Tata has collaborated with one of the largest loan and finance company, Bajaj Finance, to offer a monthly installment payment option for solar power users, without interest. This national finance programme will be rolled out across 20 cities in the first phase and slowly expanded to other parts of the country.
Instant credit will be available for solar products costing less than $4,000. Tata has high hopes from the new financial model which will help consumers, who believes in solar power rather than diesel which is initially low in cost but higher in long term. Not only the high cost, but it spoils environment also. “We aim to empower consumers by giving them different financial choices for products which can impact their lives”, said Devang Mody, president of consumer finance at Bajaj.
This partnership between Bajaj and Tata is aiming to make solar energy more affordable and accessible with the interest free options for solar lights to power packs and solar water pumps. Gagan Pal, vice president for products at Tata said, “Solar products are the need of the hour, given power shortage Indians face every season.”
He added that programme has been designed to simple and to assist people who are hesitant to invest in solar due to the high cost and we plan to bring this technology to common people.
Solar is extremely economical in the long run but the whole investment is upfront. Bajaj monthly plan requires a small processing fee and down payment, with EMI spreading to seven or ten months. The agreement assists prime minister’s dream of achieving his dream of every household to have at least one light bulb.
