Power Finance Corporation and REC cut their lending rates
New Delhi:
Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) further reduced their lending rates for all types of loans, by 40 basis points (bps).
The two state-run non-bank financial corporations have managed to cut lending rates due to their low cost of borrowing. PFC and REC already provide short-term loans at interest rates as low as 6.25%, according to a statement issued by the Department of Energy. .
Energy Minister RK Singh expressed satisfaction with the two companies’ continued efforts to reduce tariffs and remain competitive, official sources said.
Singh said the continued reduction in lending rates by REC and PFC will help power utilities to borrow at competitive rates and invest in improving power sector infrastructure, thereby benefiting to the consumer with reliable and cheap energy.
Over the past year, the two organizations have reduced loan rates cumulatively by up to 3%.
To boost renewable energy, where long-term financing is needed, rates were revised to 8.25% during this period, official sources said.
