Short Term Loan
Loan for borrowers to meet their Working Capital Requirements
- State Sector Power Utilities and State Governments.
Extent of Assistance
- Loan amount shall be within balance credit exposure limit available to the Utility as per REC 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.