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Financial Products

Medium Term

Loan for borrowers to meet their Medium Term Requirements

Eligible Entities 

  • Central/State Govt. Power Utilities and State Governments, except Grade “C” Borrowers.

Extent of Assistance 

  • All Power Utilities taken together in a State – Rs. 3,000 Cr if all utilities are A+/A, else Rs. 2,000 Cr.
  • Max. Rs.500 Cr for each DISCOM if there is more than 1 DISCOM.
  • In case of DISCOMs, up to unused limit of 25% of the DISCOM’s previous year’s revenue within the above limit.
  • Limit shall be subject to Exposure available as per Prudential Norms.

Tenor of Loan 

  • 1 year to 3 years.

Interest Rate and Other Charges (Commitment/ upfront/ any other)  

  • Depending upon Grade of the Borrower and as per prevailing Loan Policy.

Other Loan Conditions

  • Security – “Hypothecation of material/assets” or “State Govt. Guarantee” or “Bank Guarantee” or “Corporate Guarantee” or “A mix of these securities”, as acceptable to REC. In addition, suitable escrow cover acceptable to the Corporation.
  • Other conditions as per policy and decided by Corporation on case to case basis.