State-run non-banking financial firms -- Power Finance Corporation (PFC) and REC Ltd -- have reduced their lending rates across all types of loans by 40 basis points.
PFC and REC Ltd have further reduced their lending rates across all types of loans by 40 Bps, a power ministry statement said.
The reduction in rates has been possible due to the lower cost of borrowings by these organisations. It is pertinent to note that PFC and REC are already providing short-term loans at interest rates as low as 6.25 per cent, the ministry said.
According to the statement, Union 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.
Singh said the 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 benefiting the consumer by way of reliable and cheap power.
In the last about one year, both the 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, it informed.