We would like to inform you that at present, JS Bank is diligently processing our cases at a rate approximately Kibor + 4% (applicable to commercial loans) for the initial 5 months. It is worth noting that the recommended system size for optimal consideration stands at 10kW. This recommendation aligns with the objectives of our relationship managers, who prioritize cases with 3kW, 5kW, and 7kW capacities lower on their list of priorities.
For esteemed business owners, it is essential to maintain an average balance of at least 2 Lac over a span of 2 years. This balance should be substantiated by a record of 6 credits and 6 debits.
Similarly, for individuals seeking financing, a prudent course of action involves demonstrating an average monthly salary of 1 Lac, substantiated with evidence such as the last 6-month salary slips.
As you consider financing options, we believe it is crucial to be aware of the following key points:
- Upfront Equity: In many cases, there is an upfront equity requirement, which can extend up to 40% of the project cost.
- Vendor Commission: A commission fee of 3% is applied to vendors, and this is added to the total cost of an EPC project, effectively borne by the consumer.
- Client Commission: A commission fee of 0.5% or 50K, whichever is higher, will be charged from the client.
- Wheel Money: While we discourage this practice, it’s important to note that Relationship Managers may require a “wheel money” payment, which can vary and is typically calculated per Watt.
- Insurance: A bank charge of up to 0.5 Rs. per Watt is applicable for insurance purposes.
- Initial Installments: The initial installments are structured at the Kibor plus Commercial Rate until they are rescheduled through the State Bank.
- Due Diligence Fees: The bank has established due diligence procedures that may necessitate legal fees.
We want to emphasize that our intention is not to discourage financing; however, it’s important to be aware that opting for financing may result in a cost increase of approximately 15% compared to paying the cash price or engaging in direct negotiations.
Additionally, JS Bank has specific collateral requirements. For residential complexes, products can serve as collateral for loans of up to 2.5 Million, while for corporate or industrial projects, the limit extends to 10 Million. It is crucial to note that JS Bank does not provide financing for battery-based hybrid or off-grid solutions.
We appreciate your consideration of these important details, and we are here to assist you in making informed financial decisions. Should you require further clarification or have any questions, please do not hesitate to reach out to our dedicated team of professionals. Your financial success remains our priority.