The government-run Non-Banking Financial Companies (NBFCs), Power Finance Corporation and REC Limited, have reduced their lending rates across all types of loans by 40 bps or 0.40 per cent, the Ministry of Power said on Wednesday.
In the last about one year, both the organisations have reduced lending rates cumulatively by upto 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 Ministry of Power said in a statement.
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 per cent," the ministry said.
Union Minister for Power and New & Renewable Energy R.K. Singh said the 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.
( With inputs from ANI )
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