Just like gold, you will soon be able to take a loan against silver.
The Reserve Bank of India (RBI) has issued a new circular called the “Lending Against Gold and Silver Collateral” Directions, 2025.
These rules will come into effect from April 1, 2026 and are designed to make it easier for people to get small loans using their silver holdings.
Where Can You Get a Silver Loan?
Several financial institutions will offer loans against silver:
Commercial banks, including small finance banks and regional rural banks
Urban and rural cooperative banks
Non-banking financial companies (NBFCs) and housing finance companies
This gives borrowers multiple options to access funds quickly using silver or gold items they already own.
Who Can Take a Loan Against Silver?
RBI has prohibited loans against raw bullion to avoid economic disruptions.
However, loans can be taken against silver and gold in the form of jewelry, ornaments, and coins.
This is particularly useful for people who need money for small expenses, emergencies, or personal needs without selling their precious metals.
Limits on Pledging Gold and Silver
To ensure responsible lending, RBI has set maximum limits for pledging:
Gold jewelry: Up to 1 kilogram per customer
Silver jewelry: Up to 10 kilograms per customer
Gold coins: Up to 50 grams per customer
Silver coins: Up to 500 grams per customer
These limits help banks manage risk while giving customers access to credit based on their holdings.
With this new rule, taking a loan against silver will become a simple and secure way to meet short-term financial needs starting next year.
