Power Financing Corporation and REC have actually minimized their lending ratesNew Delhi: Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) have even more reduce their loaning rates for all type of loans, by 40 basis points (bps).
The 2 state-run non-banking monetary business have managed to lower lending rates due to their lower cost of borrowings.
Both PFC and REC are currently supplying short-term loans at interest rates which are as low as 6.25 percent, a declaration issued by the power ministry stated.
Power minister R K Singh expressed satisfaction at the continued efforts by both business to reduce rates and remain competitive, main sources said.Mr Singh stated that continued reduction of loaning rates by REC and PFC will help power utilities to borrow at competitive rates and buy improving the power sector facilities, thereby benefiting the customer by method of trustworthy and cheap power.In the last one year, both the organisations have minimized financing rates cumulatively by up to 3 per cent.In order to boost renewable energy, where long-lasting funding is needed, the rates have been revised to as low as 8.25 per cent throughout this period, official sources said.