Srinagar, Dec 10: J&K Bank has lowered its marginal cost of funds-based lending rate (MCLR) by 0.10 percent for various tenors. The move is in line with the regulators directions to pass on the benefit of reducing cost of funds to the borrowers.
The bank after reviewing the MCLR for different tenors lowered its benchmark one-year MCLR to 8.45 pc from 8.55 pc effective from December 10, 2019.
The marginal cost of funds-based lending rate (MCLR) is the minimum interest rate that a bank can lend at and is a tenor-linked internal benchmark.
The Reserve Bank of India introduced the MCLR methodology for fixing interest rates from 1 April 2016. It replaced the base rate structure, which had been in place since July 2010.