Going Green with Home Loans
The State Bank of India (SBI) is preparing for a major overhaul in its home loan offerings under its Green Funding initiative. The bank is planning to make rooftop solar installations mandatory for upcoming housing projects. The cost of the solar plate will also be included within the scope of the home loan.
Multilateral Debt on SBI
SBI is under a debt obligation of $2.3 billion in foreign currency from multilateral agencies such as the World Bank, the Asian Development Bank, and Germany’s KfW. The bank had approved home loans amounting to ₹6.3 lakh crore as of June.
What Officials Say
SBI official Ashwini Kumar Tiwari stated, “We are planning to make rooftop solar installations mandatory for builders. We also aim to include this in a bundle deal for home loan applicants.” He added that these loans would be available for tenures of 10 or 20 years.
Green Funding Initiative
According to SBI’s website, the objective of the Green Fund is to promote activities directly contributing to a cleaner environment. Examples include tree planting, construction of bio-toilets, and solar lighting. The World Bank initiated ‘Solar Rooftop’ funding in 2016, making funds available to large banks around the world. The primary goal is to connect customers to clean climate initiatives through loans.
| Aspect | Details |
|---|---|
| New Home Loan Feature | Mandatory Rooftop Solar Installation |
| Inclusion in Loan | Cost of Solar Plate |
| Foreign Currency Debt | $2.3 billion from Multilateral Agencies |
| Home Loans Approved in June | ₹6.3 Lakh Crore |
| Loan Tenure | 10 or 20 years |
| Green Funding Goal | Promote cleaner environment activities |
