By: TP News     Date: 12/11/2019 12:16:29 PM

Jammu:

 J&KBank has lowered its marginal cost of funds-based lending rate (MCLR) by 0.10percent for various tenors. The move is in line with the regulators directionsto pass on the benefit of reducing cost of funds to the borrowers.

The bank after reviewing theMCLR for different tenors lowered its benchmark one-year MCLR to 8.45 pc from8.55 pc effective from December 10, 2019.

The marginal cost offunds-based lending rate (MCLR) is the minimum interest rate that a bank canlend at and is a tenor-linked internal benchmark.

The Reserve Bank of Indiaintroduced the MCLR methodology for fixing interest rates from 1 April 2016. Itreplaced the base rate structure, which had been in place since July 2010.