Can I give the Indian Renewable Energy Development Agency (IREDA) a bank guarantee or fixed deposit until my collateral property is mortgaged, and how long do I have?

Yes, for a limited time. If the mortgage on your spare property is late, IREDA lets you give a bank guarantee or fixed deposit of equal value meanwhile. The full amount is due within six months of first disbursement. Penal charges then apply from the end of month six, up to 12 months or until you comply.

The problem this rule solves

Mortgaging a property takes paperwork and time. The norms of the Indian Renewable Energy Development Agency (IREDA) say additional securities are normally to be completed before the first release of money. They also admit that in some cases there is a delay in providing the mortgage of collateral property, and they set out a way through.

What you may offer meanwhile

• A bank guarantee (BG) or fixed deposit (FD) of equivalent value, in place of the stipulated collateral property, upfront until the mortgage is created.
• If you cannot give that upfront, you may be permitted a BG or FD matching the amount of each proposed release of money, after IREDA records its reasons in the project file.

The clock

1. Day of first disbursement: the clock starts.
2. Within six months of it, 100% of the stipulated BG or FD amount is to be completed.
3. After six months, penal charges apply until you comply. If the security is created later than six months, they apply from the end of month six up to a maximum of 12 months, or until the mortgage or full BG or FD is in place, whichever is earlier. The norms do not say what the 12 months counts from. Our reading is first disbursement, which fits the review point in the next step.
4. If neither the mortgage nor the full BG or FD exists within 12 months of first disbursement, the Projects group of IREDA may review the matter and decide case by case.

What the norms do not say

This page gives no penal rate because this part of the norms prints none. Ask IREDA for the rate in your loan documents before you rely on the delay.

Example: dates for one loan

• First disbursement: 1 April 2027
• Full BG or FD due: 1 October 2027 (six months later)
• Penal charges, if still short: from 1 October 2027, up to 12 months (on our reading, counted from first disbursement)
• Case-by-case review by the Projects group, if still nothing by: 1 April 2028

Example dates only. Your own timeline starts on your actual first disbursement date.

What Senseible does here

Arranging a bank guarantee or deposit is between you and your bank. Senseible reads fuel invoices and electricity bills into monthly records, which helps you show a lender the running costs behind the repayment plan while you sort out the security. Senseible can pass verified records to financing partners. The partner decides. Nothing is promised.

• IREDA loan security in plain words
• How IREDA values collateral property
• What a bank checks on a green loan site visit
• Green loan readiness check

Sources: IREDA, Financing Norms and Schemes, issue 35, updated up to 01.10.2026: section 5.3 B, Note-2 on additional securities

Last reviewed 2026-11-07. Wording follows IREDA's financing norms updated up to 1 October 2026. Dates in the example are ours. Norms change, so confirm the current rule with IREDA.