Luminous Power Technologies has signed a memorandum of understanding with the Small Industries Development Bank of India (SIDBI) to enhance access to affordable solar financing for micro, small and medium enterprises across India. The partnership is designed to accelerate solar adoption by enabling faster and more structured financing solutions. Under the collaboration, MSMEs can avail loans of up to Rs 500 mn with flexible repayment tenures of up to 10 years. The offering also includes an interest subsidy of up to two per cent on eligible loans up to Rs 20 mn, bringing the effective interest rate down to as low as six point seven per cent.

The financing process has been structured for ease and speed, featuring minimal documentation, a fully digital application journey and quick approvals, with loan sanctions expected within seven days. The initiative provides up to 100 per cent project funding supported by cash collateral in the form of SIDBI Fixed Deposit Receipts and concessional interest rates linked to the borrower’s credit profile. These elements are intended to address capital constraints and enable MSMEs to make faster investment decisions in solar energy.

Leveraging Luminous Power Technologies’ pan-India presence and SIDBI’s established MSME-focused financing ecosystem, the partnership is expected to improve last-mile access to credit and drive wider adoption of clean energy solutions among businesses. Luminous positioned the collaboration as aligned with its broader strategy to democratise access to solar energy by offering an integrated ecosystem that includes manufacturing, installation, digital project management and after-sales services. The company supports customers through over 350 service centres nationwide with a 24-hour response timeline and multiple service touchpoints.

The initiative is expected to play a key role in enabling MSMEs to contribute to India’s clean energy transition and sustainable growth objectives. By reducing upfront capital barriers and lowering financing costs, the scheme aims to accelerate rooftop and captive solar deployment among small businesses and improve operational resilience. Officials indicated that the combined offering should facilitate quicker decision making and expand uptake across sectors.