Srinagar: While revisiting its lending benchmark rate, J&K Bank has lowered its marginal cost of funds based lending rate (MCLR) across all maturities.
The overnight MCLR has been set at 8.75%. This is the lowest rate in the industry. The new rates shall be effective from October 10.
In order to facilitate monetary transmission and ensure that changes in lending rates are sensitive to movements in the policy rates, the RBI had introduced the MCLR as the benchmark for lending, instead of the base rate, from April 1.
The cut in MCLR is going to benefit the borrowers as they shall be accessing the funds at reduced cost.