KATHMANDU: The Alternative Energy Promotion Centre (AEPC) has partnered with Civil Bank to extend subsidised solar loans to users.

The loan can be availed by any household or commercial venture with an installed electricity grid line provided by Nepal Electricity Authority and the bank will finance up to 90 per cent of the cost of the solar equipment. Civil Bank will extend solar loan for households at 2.25 per cent and for commercial purpose at 4.50 per cent interest rate.

An agreement between AEPC and Civil Bank to implement the subsidised solar loan was signed by Ram Prasad Dhital, executive director of AEPC and Kishore Maharjan, CEO of Civil Bank, on Saturday. Since the loan will be extended by pledging the solar equipment itself, customers need not provide additional collateral security to avail the loan.

The loan will be available for household use equipment having capacity between 100 watts to 1,500 watts and with capacity of over 1,500 watts for commercial purposes.

The loan will be disbursed within two working days if all required documents are submitted. Besides, AEPC will also provide a grant of Rs 15,000 to individuals applying for loan of equipment with a capacity of over 500 watts and commercial-use equipment with capacity of over 1,500 watts.