Sterling Bank is one of the commercial banks in Nigeria that is committed to assisting Nigerians to get renewable energy solutions even when they don’t have enough money to pay upfront.
Sterling Bank offers two kinds of solar loans to interested borrowers. The Sterling Bank solar loans are the SMEDAN x Sterling and Imperium by Sterling. Each of the solar loan options has its loan amount, interest rate, down payment, and repayment plan.
However, the SMEDAN x Sterling is solely for small business owners who want to go solar but don’t have enough money to pay upfront, while Imperium by Sterling is for individuals who want loans to fund their solar projects.
Sterling Bank Solar Loan
As we noted in the introduction, Sterling Bank solar loans come in different forms to enable businesses and individuals to choose the suitable solar loan for themselves. However, each of them has different loan terms.
Sterling Bank Imperium
Imperium by Sterling Bank is just like a digital platform that connects energy consumers and providers of renewable energy (solar solutions). It provides different financing options for interested customers to purchase renewable energy solutions outright even when they don’t have money to pay upfront.
There are different projects that are eligible for Imperium solar loans, such as
- Mini-Grids: To enable rural electrification and last-mile connectivity
- Solar Home Systems (SHS): To provide affordable energy to households and small businesses
- Commercial & Industrial (C&I) Projects: To help businesses cut energy costs with solar, wind, biomass, hydro, and battery-powered inverter systems
The loan terms for Imperium by Sterling are broken down below:
- Loan Amount: Up to ₦30,000,000 and above
- Interest Rate: 4% to 6% monthly
- Down Payment: 10-30%
- Repayment Plan: 48 Months
SMEDAN x Sterling
This is another solar loan option from Sterling Bank. It is a joint solar initiative between SMEDAN and Sterling Bank to empower MSMEs across the country. This solar financing option is available for small businesses in Nigeria that have an annual turnover that is below ₦60,000,000. This means that even if you have a business and your annual turnover is more than ₦60,000,000, you won’t be able to access the SMEDAN x Sterling solar loan.
SMEDAN x Sterling Solar Loan Terms
- Loan Amount: Up to ₦7,500,000
- Interest Rate: 1% to 2%
- Down Payment: 10%
- Repayment Plan: 24 months.
Sterling bank solar loan requirements
To access a Sterling Bank solar loan, be it Imperium or SMEDAN, you will need to present the following requirements:
- Legal charge on financed renewable energy equipment (Assets will be purchased in the Bank’s name)
- Comprehensive insurance on the financed renewable energy assets
- Assignment of warranty benefits to the Bank
- Personal guarantee from the principal promoter/director of the business
- Additional collateral may be required, subject to project review
Sterling Bank Solar Loan Interest Rate
Sterling Bank has different interest rates for their various solar loans. The interest rate for SMEDAN x Sterling solar loan is 1% to 2%, while the interest rate for Imperium by Sterling solar loan is 4% to 6%