Cooperative institutions in Tamil Nadu can now lend up to ₹10,000 per gram of gold, up from ₹7,000, after a state decision in the first week of October 2026, DT Next reported. The loan is still limited to 75% of the jewellery’s market value, and the higher ceiling applies to new loans and to renewals.
In Chennai, that change runs mainly through two banks most residents pass without noticing: the Tamil Nadu State Apex Co-operative Bank in George Town and the Chennai Central Co-operative Bank on Prakasam Salai. Here is how they fit together and what to check before you borrow or deposit.
How the cooperative bank system is layered
Tamil Nadu’s cooperative credit has three tiers. The state apex bank sits at the top. Below it are District Central Co-operative Banks (DCCBs), one for each district area. At the bottom are Primary Agricultural Co-operative Credit Societies (PACCS) in rural areas, plus urban cooperative banks and employees’ credit societies in towns. The state’s Statistical Hand Book 2020-21 counted:
| Type (2020-21) | Number in Tamil Nadu |
|---|---|
| Central co-operative banks | 23 |
| Primary agricultural credit societies | 4,451 |
| Co-operative urban banks | 126 |
| Urban credit societies | 115 |
| Employees’ co-operative credit societies | 1,702 |
Chennai city has no PACCS network to speak of, so the DCCB and the apex bank do most of the direct lending to residents.
The cooperative network is large by membership. The same handbook counted about 1.16 crore members in primary agricultural credit societies across the state in 2020-21, which is why changes to jewel loan rules reach so many rural households even when the headline decision is made in Chennai.
TNSC Bank: the 1905 apex bank
The Tamil Nadu State Apex Co-operative Bank was registered on 23 November 1905 as the Madras Central Urban Bank, which it describes as India’s first central cooperative bank. It became the Madras Provincial Co-operative Bank in 1931 and took its present name after the state was renamed in the late 1960s. Its first loan was disbursed in February 1906. The head office moved to College House on China Bazaar Road (NSC Bose Road), George Town, on 1 October 1937.
The bank says it has around 50 branches, most of them in Chennai, and began jewel loans in December 1976 in three branches. On 31 March 2023 it had deposits of ₹12,486.51 crore, loans and advances of ₹17,386.16 crore and a profit of ₹114.78 crore for 2022-23. It also refinances district banks and societies across the state for their jewel loans.
Chennai Central Co-operative Bank: the city’s DCCB
The Chennai Central Co-operative Bank was registered on 10 July 1930 as the Madras District Co-operative Central Bank. Its area of operation is the Chennai Corporation limits. It holds a banking licence from 1980 under the Banking Regulation Act and serves as the central bank for 488 member societies in the city.
- 72 branches, 21 ATMs, 10 micro ATMs and 3 mobile ATM vans; head office on Prakasam Salai, Broadway.
- Jewel loans since 1976, introduced as an alternative to moneylenders and pawnbrokers.
- As of 31 March 2025: net profit ₹33.86 crore, capital adequacy 26.75% and net NPA 3.41%, figures the bank describes as among the best for central cooperative banks in the state.
The October 2026 gold loan changes
According to the DT Next report on the government decision:
- the per-gram cap rose from ₹7,000 to ₹10,000, still subject to 75% of market value;
- it covers new loans and loans being renewed;
- the maximum interest rate had been raised from 12% to 13% the previous year;
- DCCBs must charge PACCS at least 1.25 percentage points less than their own branch jewel-loan rate, and the PACCS margin is capped at 2.25%.
Rates differ by bank and scheme, so ask the branch for the current rate card and the tenure (often six months or one year) before pledging. Keep the pledge receipt, check the weight and purity recorded, and note the date the loan falls due.
Is your money safe?
All cooperative banks, meaning state, central and urban cooperative banks, are covered by DICGC deposit insurance up to ₹5 lakh per depositor per bank, according to the RBI’s FAQ. Primary cooperative credit societies are not insured by DICGC. If you place a deposit with a society rather than a bank, that protection does not apply. For large sums, consult a financial adviser.
Quick answers
What is the cooperative gold loan limit in Tamil Nadu now?
₹10,000 per gram or 75% of market value, raised from ₹7,000 per gram in October 2026.
Which cooperative bank serves Chennai city?
The Chennai Central Co-operative Bank, with 72 branches inside Corporation limits. TNSC Bank also has branches in the city.
Are deposits in cooperative banks insured?
Yes, up to ₹5 lakh per depositor in cooperative banks. Deposits in primary cooperative societies are not covered.
How old is TNSC Bank?
It was registered on 23 November 1905.
Information checked against official sources on 18 October 2026. Fees, dates and rules can change; confirm on the linked official pages before acting.
Sources
- Growth of the bank (Tamil Nadu State Apex Co-operative Bank)
- Profile (Chennai Central Co-operative Bank)
- Statistical Hand Book of Tamil Nadu 2020-21, Co-operation chapter (Department of Economics and Statistics)
- Deposit insurance FAQs (Reserve Bank of India)
- Tamil Nadu: Co-op gold loan cap hiked to Rs 10,000 per gram (DT Next)
