# Banks in India take green deposits. Does that help an MSME get finance for a green project?

Canonical: https://senseible.earth/answers/green-deposits-funds-for-msme-green-projects

Possibly. RBI's framework asks banks to lend green deposit money to listed green activities such as renewable energy and energy efficiency. An MSME with a clear project and evidence of its benefit may find more interest from lenders, but terms are the bank's decision.

## What the framework does

Banks raising green deposits must allocate the money to eligible green activities and report on it, which creates demand for projects that fit.

## What helps

- A project that matches a listed activity.
- A baseline of energy use or emissions before the project.
- An estimate of savings, labelled as an estimate.

## What it does not do

It does not guarantee a loan or a lower rate. Each bank sets its own terms.

## What Senseible does here

Senseible turns bills and fuel invoices into a dated, traceable emissions record, the kind of evidence lenders may ask for. Lenders decide, and financing is never guaranteed.

- [Green loan principles](https://senseible.earth/answers/green-loan-principles-explained)
- [How lenders read GHG reports](https://senseible.earth/answers/how-lenders-read-msme-borrower-ghg-report)
- [Climate finance readiness check](https://senseible.earth/answers/climate-finance-readiness-check-msme)

Sources: [Reserve Bank of India](https://www.rbi.org.in), [Loan Market Association, green and sustainability-linked loan principles](https://www.lma.eu.com)

Last reviewed 2026-10-22.