The Tamil Nadu Cooperative Department has raised the gold loan limit offered by cooperative institutions to Rs 10,000 per gram or 75% of the market value of the pledged gold, providing borrowers with greater access to institutional credit.
The revised limit will apply to newly sanctioned gold loans as well as existing gold loans being renewed. Borrowers renewing their existing gold loans can therefore avail themselves of the enhanced limit, subject to applicable terms and conditions.
Earlier, cooperative institutions were permitted to provide gold loans up to Rs 7,000 per gram or 75% of the market value, under the prevailing norms.
The revised provision is expected to increase the borrowing capacity of members against pledged gold and strengthen access to credit through cooperative institutions.
The move is aimed at facilitating easier and more accessible institutional credit through the cooperative sector, particularly for members relying on gold-backed loans for their financial requirements.
