Now You Can Get A Loan Against Silver Too, RBI Issues New Guidelines Effective From April 2026

New Delhi: Just like gold loans, individuals will soon be able to avail loans against silver to meet their urgent financial needs. If you have silver jewellery or coins lying at home, they can now help you raise funds quickly. The Reserve Bank of India (RBI) has issued a circular announcing that new guidelines for silver-backed loans will come into effect from April 1, 2026.

RBI’s new silver loan policy

The RBI has officially amended its lending rules, allowing banks and financial institutions to extend loans against silver ornaments and coins, similar to gold loans. From the next financial year, customers will be able to avail this facility through commercial banks, cooperative banks, small finance banks, and other regulated lenders. The move aims to make credit more accessible and inclusive for those who may not have gold but hold valuable silver assets.

How much silver can be pledged?

According to the new guidelines, borrowers will be allowed to pledge up to 10 kilograms of silver to secure a loan. Currently, up to 1 kilogram of gold can be pledged for gold loans. Additionally, silver coins up to 500 grams can also be used as collateral. This measure significantly broadens the scope for borrowers, particularly in rural areas where silver assets are common.

Where silver loans will not apply

The RBI has clarified that silver bricks or bars will not qualify for loans. Similarly, silver-based investments, such as ETFs or mutual funds, are excluded from the scheme. Only physical silver items such as jewellery and coins will be accepted as collateral.

Loan amount and repayment terms

If you pledge silver worth Rs 2.5 lakh, you can get up to 85 percent of its value as a loan. For silver worth Rs 5 lakh, the loan-to-value (LTV) ratio will be capped at 75 percent. Once the borrower repays the entire loan, banks or NBFCs must return the pledged silver or gold within seven working days. If they fail to do so, they will face a penalty of Rs 5,000 per day.

In case the borrower defaults on repayment, the bank or financial institution will have the right to sell the pledged silver or gold to recover the outstanding dues.

The introduction of silver loans marks a significant expansion of secured lending options in India, offering households another way to unlock the value of their precious metals in times of need.