Financial Products Long Term Loan

Long Term Loan - Renewables

We finance all type of Power Generation Projects based on Renewable Energy (RE) Sources i.e Solar, Wind, Biomass, Small Hydro etc. We sanction loans as a sole lender or as a co-lender in consortium with or without the status of lead financer.

Types of Schemes Financed


Minimum Size (MW)

Sole Funding Limits**

Consortium Funding Limits**

IR-1 to IR-4


Solar Project


  • Debt of up to 750 Cr
  • Maximum debt up to Rs.1000 Cr (For IR-1 to IR-3 may be considered based on firm power purchase agreement with NTPC/ SECI/ State PSU‟s and Central PSUs/ Central government agencies or availability of three tier security mechanism in case of PPA with DISCOMs)

Maximum debt Rs.350 Cr

Restricted to 50% of project cost without any restriction on overall cost and size of the project

Wind Project

Small Hydro Project

  •  Maximum debt Rs.200 Cr. (For IR-1 to IR-3)
  •  Maximum debt Rs. 100 Cr. (For IR 4)

Maximum debt Rs. 100 Cr. (For  IR 5)

Biomass Project

  • Maximum debt Rs.100 Cr. (For IR-1 to IR-3)
  • Maximum debt Rs. 50 Cr. (For IR 4)  

Maximum debt Rs. 50 Cr. (For IR 5)

**Funding limits are only for Private sector borrowers.

For interest rates, click here.

Loan Tenor

Moratorium Period:

The moratorium period for principal repayment may be up to twelve (12) months after the Commercial Operation Date (COD).

Repayment Period:

The repayment period after moratorium shall therefore be as follows:

 Repayment Period Project

Repayment Period


  •  Normally 15 years or PPA tenure whichever is lower ; may be extended based on merit but not exceeding 80% of economic life or PPA whichever is lower


Municipal solid waste/residual derived fuel/Biomass

  •  Maximum 15 Years or PPA tenure whichever is lower

Small Hydro Projects

  • Normally 15 years or PPA tenure whichever is lower;

May be extended based on merit but not exceeding 25 years subject to availability of PPA.

Other Technologies

  • Maximum 15 years

REC may take economic life from any of the following::

a. As provided under CERC/SERC guidelines or

b. As suggested by Lenders Independent Engineer (LIE)/PMA

c. As decided by REC based on the location of the project, technology of the project and operational & maintenance cost of the project.


Major Categories of borrowers:

  • State Sector Power Utilities/SEBs, 
  • Central Sector, 
  • Joint Sector and 
  • Private Sector Companies/Independent Power Producers (IPPs).

Fees Applicable:

A.    Private Sector Borrowers

Processing Fees

0.1% of loan sanction amount by REC subject to minimum of Rs.5 lakh and maximum of Rs.50 lakh.

50% of the processing fee at the time of submission of loan application. The balance amount of processing fee shall be paid as on or before the date of issuance of sanction letter.

In case extension of validity of sanction letter is allowed (beyond 6 months up to 12 months), a non-refundable revalidation fee @ 10% of processing fee (as per prevailing policy/rate) shall also be levied subject to minimum of Rs. 1 lakh.

If no disbursement is made, after expiry of 12 months from the date of sanction letter, the sanction letter and documentation if executed shall lapse and a fresh re-appraisal along with fee of the project/entity may be carried out by REC.

Processing Fess for cost overrun

0.1% of additional loan sanction amount subject to minimum of Rs.1 lakh and maximum of Rs.10 lakh

To be paid upfront

Upfront Fee


IR 1 & IR 2

0.15% of the total project debt

IR 3 & IR 4

0.20% of the total project debt

IR 5

0.25% of the total project debt


100% of the upfront fee shall be payable on or before documentation

Lead Fee


IR – 1 & 2

0.50% of the underwritten amount

IR – 3

0.75 % of the underwritten amount

IR – 4

1.00% of the underwritten amount

100% of Lead fee shall be payable on/before documentation.

 In cases where REC is the sole lender, lead fees shall also be charged.


B.    State Sector Borrowers
As per REC's prevailing policy for state sector borrowers.


For further information, please contact:

AK Tyagi
CGM (Renewable Energy)
Core 4, SCOPE Complex,
7, Lodi Road, New Delhi-110003
Tele.-  0120-2807373
 Email id –

Vivek Agarwal
GM (Renewable Energy)
Core 4, SCOPE Complex,
7, Lodi Road, New Delhi-110003
Tele.-  +911143091654


Renewables Department Email


Website last updated at: 03/12/2020 - 03:50 PM
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