# India

NBFC, PFC, REC reduce their lending rates by 40 points

Both the Power NBFCs have reduced lending rates cumulatively by upto 3%, said a senior officer of the Power Ministry here on Wednesday.

Statesman News Service | New Delhi | January 19, 2022 2:57 pm

NBFC, PFC, REC reduce their lending rates by 40 points

In a big relief to power distribution companies, State-owned Non-Banking Financial Companies (NBFC), Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) reduced their lending rates across all types of loans by 40 Points.

Both the Power NBFCs have reduced lending rates cumulatively by upto 3%, said a senior officer of the Power Ministry here on Wednesday.

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%, the Ministry said.

“The reduction in rates has been possible due to lower cost of borrowings by these organizations, 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%,” the Ministry said.

The continued reduction of lending rates by REC and PFC would 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, said the Union Minister for Power R K Singh.