Power Finance Corporation Ltd (PFC) and subsidiary REC Ltd on Wednesday announced a reduction in lending rates by up to 2 per cent.

The public-sector financiers under the Ministry of Power said in a statement that the reduction will be effective from April 1.

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

The reduction will help the country’s debt-laden electricity distribution companies by “reducing their borrowing costs, thereby reducing their interest payments, and in turn benefitting the end consumer in terms of lower tariff,” the statement added.

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