Power Finance Corp and REC cut lending rates on all loan types
State-run non-bank financial companies – Power Finance Corporation (PFC) and REC Ltd – cut their lending rates for all types of loans by 40 basis points.
PFC and REC Ltd have further reduced their lending rates for all types of loans by 40 basis points, according to a statement from the Department of Energy.
The reduction in rates was possible due to the lower cost of borrowing by these organizations. It is pertinent to note that PFC and REC are already providing short-term loans at interest rates as low as 6.25%, the ministry said.
According to the statement, Union Energy and New and Renewable Energy Minister RK Singh expressed satisfaction with the continued efforts of the two companies to reduce tariffs and remain competitive.
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 the consumer. with reliable and cheap energy.
Over the past year or so, the two organizations have reduced loan rates cumulatively by up to 3%.
In order to give a boost to renewable energies, where long-term financing is needed, the rates have been revised to 8.25%, he informed.
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