IREDA to extend loan facilities to MSMEs for renewable energy projects

Indian Renewable Energy Development Agency Limited (IREDA) is committed to increasing participation of micro, small and medium enterprises (MSMEs) in renewable sector by offering loan facilities.

IREDA is attempting to address the issues of MSMEs in order to increase their participation in renewable energy sector, as MSMEs only represent 1.86 per cent of the company’s total loan assets of Rs 338.84 billion as on May 2022. Moreover, the target of 500 GW of renewable energy capacity by 2030 cannot be achieved without the considerable participation of MSMEs. Therefore, MSME’s efforts will be a crucial driver of Aatmnirbhar Bharat. A major barrier for MSMEs entrepreneurs is the inability to getting loans with reasonable interest rates, but IREDA has significantly improved the ease of doing business in terms of faceless loan sanctions and disbursements, reduction in loan sanction, documentation and disbursement cycle and increased geographical footprint in the country.