New Delhi: Government-managed non-banking finance company – Power Finance Corporation (PFC) and REC Ltd – has reduced their loan interest rates on all types of loans of 40 basis points.
PFC and REC Ltd have reduced their loan levels on all types of loans of 40 bps, said the ministry of power.
The tariff reduction has been possible because it reduces loan costs by these organizations.
This relates to note that PFC and Rec have provided short-term loans at the interest rate as low as 6.25 percent, the ministry said.
According to the statement, the minister of unity for power and new & renewable energy R K Singh expressed satisfaction in further efforts by both companies to reduce the level and remain competitive.
Singh said the further reduction of loan interest rates with REC and PFC will help the power utility to borrow at competitive prices and invest in increasing the electrical sector infrastructure, so it benefits consumers with reliable and cheap power.
In the last year of about one year, both organizations have reduced loan interest rates cumulatively up to 3 percent.
To provide a boost to renewable energy, where long-term funds are needed, rates have been revised to as low as 8.25 percent, that information.