Your renewable energy projects could get easily financed and that too at low interest rates
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Due to the lack of projects in thermal and hydropower sectors, the financiers have found a new favourite in the ‘Renewable Energy’ sector, projetcs belonging to which will now find it easier to get loans easily and that too at low interest rates.
Similar projects in 2010-11 attracted around 13.5% rate of interest.
"The reduction of interest rates is a combination of two factors. Our borrowing costs have slightly come down in the last three-four months and we want to be more competitive in renewable energy lending," a senior REC executive told ET.
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While in 2010-11, REC had sanctioned Rs 390 crore for renewable energy projects, last year, the figure was Rs 2,965 crore. PFC, on the other hand, sanctioned close to Rs 1,900 crore to renewable energy projects last year.
Also, the repayment period of these loans has been increased to 15 years from the earlier 10 years, while the moratorium period is now one year from the earlier period of six months. Not to forget, loans on these projects no longer require any collateral security.
The reason behind these newfound love for
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