PFC-REC Cuts Lending Rates by 40 Bps

State-owned Non-Banking Financial Companies (NBFCs), Power Finance Corporation and REC Ltd have further reduced their lending rates across all types of loans by 40 Bps.

In the last about one year, the two organisations have reduced lending rates cumulatively by up to 3 per cent.

In order to give a boost to renewable energy, 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 the lower cost of borrowings by these organisations, in the past year or so.

Both PFC and REC have been already providing short-term loans at interest rates as low as 6.25 per cent.

Cabinet Minister for Power and New & Renewable Energy 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”.