REC, PFC Cut Lending Rates Up to 2% from April 1

State-owned power sector major lenders REC (formerly Rural Electrification Corporation Ltd) and Power Finance Corporation (PFC) have reduced the lending rates up to 2 per cent.

April 01, 2021. By Manu Tayal

State-owned power sector major lenders REC (formerly Rural Electrification Corporation Ltd) and Power Finance Corporation (PFC) have reduced the lending rates up to 2 per cent.

This initiative was undertaken to offer competitive rates, in line with the rates being offered by peers in the market. The move is expected to help the two lenders in continuing their business growth going forward in addition to maintaining reasonable spreads.

Both REC and PFC are Navratna Central Public Sector Enterprises (CPSEs) under Ministry of Power, and are the prime financiers of Indian Power Sector capturing a significant market share in financing Indian Power Sector.

PFC and REC as group companies have been aligning operations to realise synergies.

The reduction in lending rates will help both PFC and REC to offer lower rates to power utilities, which will reduce their borrowing costs thereby reducing their interest payments and in turn benefitting the end consumer in terms of lower tariff.

The lending rates will be effective from April 01, 2021.

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