Power Finance Corporation, REC Cut Lending Rates by 0.40%

The government-run Non-Banking Financial Companies (NBFCs), Power Finance Corporation (PFC) and REC Limited, reduced their lending rates across all types of loans by 40 bps or 0.40 per cent, the Ministry of Power said.

The reduction in rates has been possible due to lower cost of borrowings by these two companies in the past year.

In the last about one year, both the organisations have reduced lending rates cumulatively by upto 3 per cent.

The rates have been revised to as low as 8.25 per cent In order to give a boost to renewable energy.

The reduction in rates has been possible due to lower cost of borrowings by these organisations, in the past year or so.

It is pertinent that PFC and REC are already providing short term loans at interest rates as low as 6.25 per cent

Hon’ble Cabinet Minister for Power and New & Renewable Energy Sh. R.K. Singh expressed satisfaction at the continued efforts by both companies to reduce rates and remain competitive.

In a statement, he said that “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”.