PFC and REC to reduce lending rates from April 1

By Editor


India’s state-run power sector finance companies, Power Finance Corporation (PFC) and Rural Electrification Corporation (REC), will reduce lending rates up to 2 percent from April 1.

“This initiative was undertaken to offer competitive rates, in line with the rates being offered by peers in the market. This will also help PFC and REC to continue their business growth going forward in addition to maintaining reasonable spreads,” PFC said in a statement.

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.

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