Financial Products

Short Term Loan


Loan for borrowers to meet their Working Capital Requirements

Eligible Entities

  • Power Utilities (including Private Sector Borrowers) and State Governments.

Extent of Assistance 

  • Up to unused overall limit of working capital considered by the respective State Electricity Regulatory Commission. However, REC may exceed such limit by 25% on case to case basis.
  • In case of DISCOMs, up to unused limit of 25% of the DISCOM’s previous year’s revenue or unused limit of working capital considered by the Regulatory Commission, whichever is lesser.
  • Limit shall be subject to Exposure available as per Prudential Norms.

Tenor of Loan 

  • Up to 1 year.

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 covers acceptable to the Corporation.
  • Other conditions as per policy and decided by Corporation on case to case basis.


Page Last Updated At: 15/04/2017 - 12:00 AM
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