FINANCIAL OVERVIEW

INTEREST RATES

The I-Bank charges interest on funds drawn on short-term loans. The effective interest rate is set monthly as determined by the Board and shall be based on the I-Bank’s cost of short-term funds and market rates. For example, the short-term loan rate on March 1, 2024 was set at 2.45%. This rate was approximately 1% lower than the average 1-year AA rated tax-exempt Bond Anticipation Notes ("BANS") sold in the previous month by municipalities in the State. Borrowers accrue interest charges only on funds that have been drawn. The current effective monthly interest rate can be found on the I-Bank's website here. Long-term interest rates may vary, but for 2024, most borrowers will receive an effective interest rate made equal to 50% of the I-Bank's market rate.