Power Finance Corporation (PFC) as well as REC Ltd have further reduced their lending rates, across all types of loans.
An official release noted that PFC and REC have reduced their lending rates by 40 bps (0.4 percentage points) across all types of loans.
Expressing his satisfaction over the development, Union power minister R.K. Singh noted, “Continued reduction of lending rates by REC and PFC will help power utilities to borrow at competitive rates and invest in improving the power sector infrastructure, thereby benefitting the consumer by way of reliable and cheap power”.
PFC and REC are already providing short term loans at interest rates as low as 6.25 per cent.
Also read: Power Finance Corporation: Jha Takes Charge As Director (Projects)
In the last one year or so, both PFC and REC have been reducing their lending rates, amounting cumulatively to around 300 bps. (3 percentage points)
In order to give a boost to the renewable energy sector, where long term funding is required, the rates have been revised to as low as 8.25 per cent.
The reduction in rates has been possible due to lower cost of borrowings by these organisations, in the past year or so, the release added.
Featured photograph for illustration only
