J&K Bank reduces MCLR to 8.75%

The Jammu and Kashmir Bank has lowered its marginal cost of funds-based lending rate (MCLR) across all maturities.

The overnight MCLR has been set at 8.75 per cent. This is the lowest rate in the industry. The new rates will 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 Reserve Bank of India had introduced the MCLR as the benchmark for lending, instead of the base rate, from April 1.

The cut in MCLR will benefit the borrowers as this will reduce the cost of funds.