The Reserve Bank of India (RBI) is planning to make it easier for people to get money in times of financial need. Till now, loans were given only by pledging gold jewellery or coins. But now, silver is also being added to that list. From April 1, 2026, people will be able to take loans by pledging silver as well. This facility will be available through banks, cooperative banks, and non-banking financial institutions (NBFCs).
The RBI said that short-term loans will be given in exchange for gold and silver jewellery or coins. However, gold or silver bars (bullion form) will not be included in this rule. This means the facility will apply only to ornaments or coins. Experts believe this step by the RBI will help middle-class and lower-middle-class people get loans more easily. Not everyone owns gold ornaments, but many people have silver items at home.
Loans on Silver: RBI Introduces Simple Rules Similar to Gold
According to the new rules of the Reserve Bank of India (RBI), loans can now be taken by pledging silver, just like gold. The same process will be followed in both cases. Sources say that up to 85% of the value of gold can be taken as a loan, and the same ratio will apply to silver. Earlier, this limit was 75%. For example, if someone has gold worth ₹1 lakh, they can get a loan of up to ₹85,000. Similarly, the value of silver jewellery will be decided based on the market price.
Loan Limit and Repayment Rules
Multiple loans cannot be taken by pledging the same gold or silver. Also, loans cannot be taken to buy gold, silver, or ETFs. A maximum loan of ₹2.5 lakh can be given, which must be repaid within 12 months. As per RBI guidelines, up to 1 kg of gold jewellery or 50 grams of gold coins can be pledged. In the case of silver, up to 10 kg of jewellery or 500 grams of silver coins can be pledged.
Once the loan is repaid, the pledged gold or silver must be returned within 7 days. If there is a delay, the lending institution will have to pay a fine of ₹5,000 per day. If the pledged gold or silver is lost or damaged, the lender must pay compensation.
If the borrower cannot repay the loan on time, the lending institution can sell the pledged gold or silver through an auction. However, proper notice must be given before the sale. The reserve price for the auction should be 90% of the market price. If it is not sold after two auctions, it can be sold at 85%. If the sale amount is higher than the loan amount, the extra money must be returned to the borrower within 7 days.
Experts say this move by the RBI will boost India’s microfinance sector and improve financial security for many people by using gold and silver as valuable assets.