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Module: General Practice

Q32: Regarding the Priority Sector Lending limit for Renewable Energy projects, which of the following statements correctly describes the borrower limits as of February 2026?

A
The limit for borrowers (like solar power generators) is ₹35 Crore, while the limit for individual households is ₹10 Lakh.
B
The limit for all renewable energy borrowers is fixed at ₹15 Crore.
C
There is no cap on loans for renewable energy; the entire amount is eligible.
D
The limit for individual households has been raised to ₹1 Crore.
✅ Correct Answer: A
Renewable Energy Limits: 1. Corporate/Project Limit: Loans to borrowers for purposes like solar based power generators, biomass-based power generators, wind mills, and micro-hydel plants are eligible for Priority Sector Classification up to ₹35 Crore.
2. Individual Household Limit: Loans to individuals (e.g., for rooftop solar installation) are capped at ₹10 Lakh per borrower.
The loan limit for Renewable Energy borrowers (solar generators, biomass, etc.) was enhanced to ₹35 Crore (up from ₹30 Crore) in the 2025 guidelines.
The individual household limit remains ₹10 Lakh.
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