New Delhi: The State-owned non-banking financial companies – Power Finance Corporation and REC Limited- have cut their lending rates by 40 basis points across the board. Over the last year or so, both organizations have reduced lending rates cumulatively by 3 percent.
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 percent.
The reduction in rates has been possible due to the lower cost of borrowing by these organizations over the past year or so. The rate cuts were made feasible by these organisations’ lower borrowing costs over the last year or so. 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 percent. REC and PFC offer short term loans with interest rates as low as 6.25%. It is pertinent that PFC and REC are already providing short term loans at interest rates as low as 6.25%.
Minister of Power, New and Renewable Energy R.K. Singh hailed both companies’ ongoing efforts to reduce tariffs and remain competitive. “Continued reductions in REC and PFC financing rates will allow Power Utilities to borrow at competitive rates and invest in upgrading the power sector infrastructure, eventually benefiting consumers through the reliable and cheap power,” he said in a statement.