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‘Bullet repayment’ means a lump-sum payment for the entire loan amount paid at the time of maturity. Such arrangements may be put in place by the banking regulator (RBI in case of India) to fasten the process of recovery of the non-performings assets (NPAs) process of the banks. The distressed assests, in this way come back to bank, may be with a lower profit element to them.
Such an announcement was made by the RBI in 2014–15 allowing bullet repayment of loans extended against pledge of gold ornaments and jewellery for other than agricultural purposes.