The government-run Non-Banking Financial Companies (NBFCs), Power Finance Corporation and REC Limited, reduced their lending rates across all types of loans by 40 bps or 0.40 per cent, the Ministry of Power said.
The reduction in rates has been possible due to lower cost of borrowings by these two companies in the past year.
The rates have been revised to as low as 8.25 per cent In order to give a boost to renewable energy.
"It is pertinent that PFC and REC are already providing short term loans at interest rates as low as 6.25 per cent," the ministry said.
(With inputs from ANI)