Customers feel the EMI pinch, apex bank urged to ease rules

AFTER a section of the gold loan customers of the cooperative banks in the state expressed difficulty in repaying the principal and interest on a monthly basis as per the recent directive of Reserve Bank of India (RBI) for jewel loans above ₹2 lakh, the cooperation department has approached the RBI through NABARD, requesting relaxation of the monthly repayment norms.

- B ANBUSELVAN @Chennai

The revised norms had come into force from December last year.

According to officials from the department, bullet gold loans—typically repaid in full at the end of 12 months—are capped at ₹2 lakh based on the borrower's profile. However, loans exceeding ₹2 lakh have to be repaid through equated monthly installments (EMIs), covering both principal and interest over a 12-month period.