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Federal Bank has teamed up with Ecofy to offer solar installation solutions for MSMEs.

Banking & Finance | Dated: 28 Dec 2024

Federal Bank, based in Aluva (Kerala) and the 6th largest private sector bank in India, has teamed up with Ecofy, India's first green-focused Non-Banking Financial Company (NBFC) backed by Eversource Capital Private Limited (ECPL). Together, they aim to offer financing options for Micro, Small, and Medium Enterprises (MSMEs) investing in commercial rooftop solar installations.

🎯 Key Highlights:

  • - This partnership is one of the first co-lending initiatives designed to meet the unique solar financing needs of the MSME sector.

💡 Other Important Facts:

  • (i) The goal of the agreement is to finance 3,600 kilowatts (kW) of rooftop solar installations every year. This will help numerous MSMEs and reduce over 2,500 tons of carbon dioxide (CO2) emissions annually, promoting sustainability and supporting green growth.
  • (ii) The partnership focuses on financing solar installations in the 20-200 kW range, a segment that has traditionally been underserved by financial institutions.
  • (iii) Federal Bank is committed to supporting the growing MSME sector, with MSME loans making up over 20% of its total loan portfolio.

📚 Test Your Knowledge:

Which bank has Recently partnered with Ecofy to offer solar installation solutions for MSMEs?

Correct Answer: Federal Bank

🚀 Quick Recap:

About Federal Bank

  • CEO: Krishnan Manian
  • Headquarters: Aluva