Type Of Guarantee

PRGFEE will act as a first-loss and subordinated recovery guarantee, to be placed in a guarantee reserve account and paid out to PFIs in the event of energy efficiency projects becoming a non-performing asset (NPA). PRGFEE shall be used for promoting energy efficiency in India through the ESCO route. The amount paid out will be equal to the agreed-upon percentage of the outstanding principal and will not cover the interest or any other fees owed to the PFI by the borrowing entity.

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