REC cuts lending rates by 100 bps across the board

ENS

MUMBAI: The Rural Electrification Corporation Ltd (RSC) on Monday effected an across-the-board 100 basis points cut in its lending rates. REC’s chairman, Divakar Dev, said that with with this cut of 100 bps, the maximum lending rate will now be at 14 per cent with the minimum at 10.5 per cent.

REC is the first specialised financial institution to slash its lending rate after a one per cent cut in the bank rate by RBI to 6.5 per cent.

The new lending rates, Dev said will be applicable for all loans sanctioned by REC with effective from Monday. Disbursements of loans sanctioned earlier will also carry the revised interest rates. REC lends funds for the purpose of rural electrification. The company has also diversified into other related areas like the financing of decentralised power generation projects, new and renewable energy sources.