New Delhi: State-owned non-banking financial companies (NBFCs) Power Finance Corporation (PFC) and REC Limited have further reduced their lending rates across all types of loans by 40 bps. In the last about one year, both the organisations have reduced lending rates cumulatively by up to 3 percent.

In order to give a boost to renewable energy (RE), where long-term funding is required, the rates have been revised to as low as 8.25 percent. "The reduction in rates has been possible due to the lower cost of borrowings by these organisations, in the past year or so," the power PSUs said in a statement on Wednesday.

PFC and REC are already providing short-term loans at interest rates as low as 6.25 percent.

Union Cabinet Minister for Power and New & Renewable Energy RK Singh expressed satisfaction at the continued efforts by both the PSUs to reduce rates and remain competitive. In a statement, he said, "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 benefitting the consumer by way of reliable and cheap power."

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)