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 

• Loan amount shall be within balance credit exposure limit available to the Utility as per REC 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.