The Reserve Bank of India (RBI) has made a major announcement for silver owners.
Just like gold, you can now take loans by pledging silver jewelry or coins.
These rules will come into effect from April 1, 2026.
This move will help people, especially in villages and small towns, who often own more silver than gold, access instant loans at lower interest rates when needed.
Who Can Offer Loans Against Silver
Under the new rules, not just banks, but also NBFCs, cooperative banks, and housing finance companies can provide these loans.
The key points include:
Eligible collateral: Silver jewelry and silver coins
Not allowed: Pure silver (bullion) or silver bars to prevent market speculation
Previously, loans were only allowed against gold jewelry and coins.
Now, silver is officially included under the Reserve Bank of India (Gold and Silver (Loans) Directions, 2025).
Limits on Pledging Gold and Silver
The RBI has set limits for pledging:
Gold jewelry: up to 1 kg
Silver jewelry: up to 10 kg
Gold coins: up to 50 grams
Silver coins: up to 500 grams
Loans above these limits will not be granted.
How Much Loan Can You Get?
The Loan-to-Value (LTV) ratio determines the maximum loan you can get:
Up to 85% for loans up to ₹2.5 lakh
Up to 80% for loans from ₹2.5 lakh to ₹5 lakh
Up to 75% for loans above ₹5 lakh
For example, if your silver is worth ₹1 lakh, you can get a loan of up to ₹85,000.
The value will be calculated based on the lower of the average 30-day price or the previous day’s price of silver from recognized exchanges.
Stones or other metals in the jewelry are not counted.
Loan Process Made Simple
Your jewelry or coins will be inspected in front of the bank, and a certified valuation report will be provided.
The loan agreement will mention the interest rate, fees, payment date, and consequences of non-repayment.
All documents will be given in your local language or your preferred language.
Pledged silver will be safely stored in a bank vault and monitored regularly.
Jewelry Return and Non-Repayment Rules
Once the loan is repaid, the bank must return your jewelry or coins within 7 working days.
If delayed due to the bank’s fault, you will get ₹5,000 per day.
If the loan is not repaid, the bank can auction your silver.
A notice will be sent first, followed by a one-month public notice if there’s no response.
The reserve price for the auction will be at least 90% of the market rate, and can go down to 85% after two unsuccessful auctions.
A special system will track unclaimed collateral.
If jewelry is not collected within two years after loan repayment, the bank will launch a campaign to contact the customer or heirs.
This RBI move makes silver as valuable as gold for emergency loans, helping people across India access instant funds securely and transparently.
