The Reserve Bank of India (RBI) has issued a new circular that brings a big change for borrowers.
Under this rule, people can now take loans not only against gold but also against silver.
Often, people need money urgently and look for quick options such as personal or gold loans.
Now, with the RBI’s new move, individuals will also be able to get loans by pledging silver kept at home. This new facility will come into effect from April 1, 2026.
Where Can You Get Silver Loans?
According to the RBI, silver loans will be offered by various banks and financial institutions. These include almost all commercial banks, small finance banks, and regional rural banks (RRBs).
Apart from these, urban and rural co-operative banks, non-banking financial companies (NBFCs),
and housing finance companies will also provide silver loan facilities to their customers.
Limits on Pledging Silver and Gold
The RBI has set clear limits on how much silver or gold can be pledged for loans.
You can pledge up to 10 kilograms of silver jewelry and 500 grams of silver coins.
The loan amount you receive will depend on the loan-to-value (LTV) ratio, which determines how much loan you can get based on the pledged silver.
Similarly, the RBI has also fixed limits for gold:
Up to 1 kilogram of gold jewelry and 50 grams of gold coins can be pledged for loans.
