How Allied Bank solar loan can help you cut electricity costs in Pakistan
In Pakistan, with increasing electricity prices, many families and businesses are looking for solar power as a money-making energy solution. For those ready to make the switch but demanding financial support, Allied Bank’s solar loan financing offers an accessible way to fix solar systems affordably. This guide covers all you need to know about applying for an Allied Bank solar finance loan online, plus its benefits and answers to common questions about this convenient financing option.
Reading this article will give you complete information about Allied Bank’s solar loan, an easy and affordable way to install a solar system for your home or business. This guide explains the loan terms, benefits, and step-by-step application process to help you make an informed decision.
Introduction
Allied Bank is making renewable energy affordable with their Allied Bank Solar Finance Loan facility, allowing Pakistanis to take out loans specifically for installing solar power systems. This financing follows Shariah-compliant principles, ensuring a cost-effective and ethical solution for households, businesses, and other institutions. The Solar Loan comes with a low markup rate of 6%, aligned with the State Bank of Pakistan’s (SBP) refinance scheme, making it a feasible option for those who wish to cut down on their energy expenses without bearing high interest costs.
Allied Bank’s solar loan financing is designed to support Pakistanis in switching to solar energy, offering an affordable solution to the country’s rising energy costs. By financing a solar system through Allied Bank, individuals and businesses can install solar panels with a low upfront cost, then repay the loan in manageable monthly installments. Here’s an in-depth look at how Allied Bank’s solar financing works and the benefits it offers.
Read More: HBL Solar Financing: A Simple Guide to Solar Loans
Benefits of Solar System Finance
By switching to solar power, individuals can not only lower their energy costs but also contribute to environmental sustainability. Here are some key benefits of the Allied Solar Financing solution:
- Loan Amount: From PKR 200,000 up to PKR 3,000,000.
- Low Markup Rate: Only 6% under the SBP refinance scheme.
- Flexible Repayment: Loan terms of up to 7 years.
- Minimal Initial Payment: 30% minimum equity required.
- Eligibility for Multiple Properties: Loans are available for properties owned by family members or jointly held assets.
- Transparency: No hidden charges and easy-to-understand documentation.
With Allied Bank’s financing, Pakistani homeowners, farmers, small businesses, and institutions can finally gain access to affordable, clean energy without a hefty upfront cost.
Eligibility Criteria
To qualify for an Allied solar loan, applicants must meet certain requirements based on employment type:
Basic Eligibility
- Must be a Pakistani citizen between 21 and 59 years old.
- Solar financing is only for individuals with a minimum monthly income of PKR 50,000 (salaried) or PKR 75,000 (self-employed).
Salaried Individuals
- Permanent employment with at least two years in the current role.
- A six-month relationship with Allied Bank or other Pakistani banks.
Self-Employed Individuals
- At least one year of banking history with Allied Bank or a minimum of two years with another bank.
- Two to three years in business, depending on the banking relationship.
Documents Required for Loan Application
The following documents are necessary to apply for an Allied Bank Solar Loan:
- CNIC: Copy of your computerized national identity card.
- Income Proof: Salary slip, bank statement, or income tax returns.
- Proof of Property Ownership: Documentation proving ownership of the property where the solar system will be installed.
- Solar Vendor Quotation: An estimate from an Allied Bank-approved solar vendor.
- Additional Documents: Based on the specifics of your application, Allied Bank may require further documentation.
All documents should be up-to-date and accurate to avoid delays in the loan approval process.
Read More: AlBaraka Green Solar Financing
How to Apply for Solar Loan
Applying for an Allied Bank solar loan online is a straightforward process that helps you access funds for your solar installation with ease. Here’s a step-by-step guide:
- Visit Allied Bank’s Official Website: Access the Allied Bank solar loan section and read the guidelines provided.
- Fill out the application form: Complete the online application form, entering your personal, financial, and property details.
- Submit Required Documents: Allied Bank requires several documents to proceed with the application, including identification, proof of property ownership, income statements, and a quotation from an approved solar vendor.
- Review and Submit: Carefully check the details before submitting.
- Wait for Processing: After submission, Allied Bank will review your application, which includes assessing your creditworthiness and verifying the submitted information.
- Approval Notification: Upon approval, the bank will inform you of the loan terms and conditions. After accepting the terms, you can proceed with your solar system installation.
Solar Finance Calculator
For those curious about the Allied Bank Solar Financing Calculator, this tool allows potential borrowers to estimate their monthly repayments. By entering the loan amount, markup rate, and repayment term, users can calculate monthly installments and better plan their finances.
The calculator factors in Allied Bank’s competitive 6% markup rate, helping applicants make informed decisions about their energy investment.
Read More: Bank Islami Solar Loan: How to apply online
Interest Rate
Under the SBP refinance scheme, Allied Bank offers an attractive interest rate of 6% for solar loans. However, if SBP refinance is not applicable, the rate adjusts to the bank’s commercial schedule (1YK + 2%). This low rate makes Allied Bank’s solar financing one of the most affordable options in Pakistan.
FAQ’s
What is Allied Bank Solar Loan?
Allied Bank’s Solar Loan is a financing solution for Pakistanis to install solar systems, reducing energy bills and enabling sustainable power generation.
What is the loan range for solar financing?
The loan amount ranges from PKR 200,000 to PKR 3,000,000.
What is the interest rate for the Allied Bank Solar Loan?
The interest rate is 6% under SBP’s refinance scheme.
How long can I repay the Allied Bank Solar Loan?
The loan term can be up to 7 years, with monthly installments calculated based on the amount and repayment period.
Is there a minimum personal contribution required?
Yes, a 30% equity contribution is necessary.
Are there any hidden costs involved?
No, Allied Bank ensures transparency with no hidden charges.
What is the processing fee for the loan?
A processing fee applies after application approval.
Can I make balloon payments?
Yes, you can make up to four balloon payments after the first year of the loan term.
Is it possible to repay the loan before the term ends?
Yes, full prepayment is allowed, though prepayment charges may apply.
What happens if I delay my loan payments?
Delayed payments result in late fees and impact your credit history.
Read More: Bank Islami Solar Loan: How to apply online
Conclusion
Allied Bank solar loan is designed to support Pakistanis in making the shift to solar power, a step towards financial savings and environmental responsibility. From low interest rates to flexible repayment terms, Allied Bank is making solar installations achievable for all.
If you want more information, you can visit the nearest Allied Bank branch or contact them via their official helpline.
