TN Coop Institutions Hike Jewel Loan Limit to ₹10K/Gm
Further, the profit margin for PACCS has been strictly capped at an upper ceiling of 2.25% to protect borrowers' interests.
Chennai: The department of cooperatives hikee jewel loan limits across institutions operating under the Registrar of Cooperative Societies.
Following decisions taken during a key meeting held on October 5, borrowers can now avail loans against gold jewellery up to ₹10,000 per gram or up to 75% of the prevailing market value of the gold.
This marks a notable revision from the earlier threshold, which capped advances at ₹7,000 per gram or 75% of market value, with six-month tenures previously assessed on monthly average market values following an interest rate hike from 12% to 13% last year.
Alongside the increased lending limit, the department moved to eliminate sharp disparities in interest rates between District Central Cooperative Banks (DCCBs) and Primary Agricultural Cooperative Credit Societies (PACCS). Under the new guidelines, the interest rate levied by DCCBs on JL-CC credit lines to PACCS must be at least 1.25% lower than the rates charged directly to retail customers at DCCB branches.
Further, the profit margin for PACCS has been strictly capped at an upper ceiling of 2.25% to protect borrowers' interests. Authorities confirmed that the enhanced loan value of ₹10,000 per gram will take effect immediately, applying both to all fresh applications and to existing jewel loans submitted for renewal across the state.