State-owned non-banking financial firms Power Finance Corporation (PFC) and REC will reduce lending rates by up to two percentage points from April 1, 2021.
"PFC and REC as group companies have been aligning operations to realise synergies. As part of such effort, PFC and REC have now decided together to reduce lending rates up to two percentage points," PFC said in a statement.
The new lending rates will be effective from April 1, 2021.
This initiative was undertaken to offer competitive rates, in line with the rates being offered by peers in the market, it said.
This will also help PFC and REC continue their business growth going forward in addition to maintaining reasonable spreads, it added.
The reduction in lending rates will help both PFC and REC offer lower rates to power utilities, which will reduce their borrowing costs, thereby reducing their interest payments and benefitting the end consumers in terms of lower tariff, it said.
PFC and REC, under the power ministry, are the prime financiers in the Indian power sector having a significant market share.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU