Bullet Repayment Scheme: RBI raises the limit for gold loans from Rs 2 lakh to Rs 4 lakh in respect of urban cooperative banks that have met all targets under the priority sector lending as on March 31, 2023
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The RBI on Friday announced to increase limit for gold loans under the bullet repayment scheme from Rs 2 lakh to Rs 4 lakh in respect of urban cooperative banks that have met targets and sub-targets under the priority sector lending as on March 31, 2023.
The RBI allowed bullet repayment of gold loans up to Rs 1 lakh in 2007, which was increased to Rs 2 lakh in 2014, with the repayment being restricted to 12 months.
Under the bullet repayment scheme, the principal and interest on a loan are paid in lump sum by a borrower to a lender at the end of the loan tenure.
