The Indian solar power push is gaining steam, which has prompted non-bank financier like Shriram City Union Finance (SCUF) to entry into the solar-power fray. The basic agenda of the firm is to offer loans to consumers and small business set-ups for setting up roof-top solar power projects in the country, according to a Business Line report.
The company has majorly relied on chit fund business to fund its small businesses clientele with required working capital but nowadays the chit business is set to be on the decline, which enforced the company to take over the area vacated by the chits.
SCUF has decided to invest its resources in setting up roof-top solar power projects in the country which has been confirmed by a senior SCUF official, who has reportedly said that they are “yet to disburse the first loan”, and re-iterated to focus on solar as a new viable vertical.
Apart from the company investing on its own, SCUF is telling the larger portion of its small businesses that ‘solar’ is a viable alternative to other sources of energy such as diesel and asking them if they want loans.
The strategy to opt for solar energy can not only lower the energy cost but also strengthen businesses ability to repay other loans. Apart from SCUF, there is evidence that other non-banking finance companies are looking at funding solar rooftop projects.
