Silver Loan: While gold and silver prices are rising rapidly, the RBI has taken a major decision. People will now be able to take loans against silver, just as they currently do against gold. The RBI’s new guidelines specify who will provide loans, how much silver or gold can be pledged, and the maximum loan limit. This move is considered a significant relief for the rural and middle classes.
The central bank will now allow commercial banks, non-banking finance companies, cooperative banks, and housing finance institutions to provide loans against silver. The RBI has issued the “Gold and Silver (Loan) Guidelines, 2025,” which will come into effect on April 1, 2026. The new guidelines specify who will provide loans, how much silver or gold can be pledged, and the maximum loan limit. This move is considered a significant relief for the rural and middle classes.
This change has been made to facilitate easier access to loans. Especially for those who traditionally rely on loans against gold, this change ensures standardised security for borrowers and clear accountability among lenders.
Who can offer silver loans?
According to the new RBI regulations, the following institutions will now be able to offer silver loans:
All commercial banks (including small finance and regional rural banks)
Urban and rural co-operative banks
NBFCs and housing finance companies
What items will be eligible for loans?
Gold jewellery – up to a maximum of 1 kg
Silver jewellery – up to a maximum of 10 kg
Gold coins – up to a maximum of 50 grams
Silver coins – up to a maximum of 500 grams
Loans will not be available against pure gold, silver, or gold ETFs/mutual funds.
How much will the loan amount be?
Up to 85% on loans up to ₹2.5 lakh
Up to 80% on loans between ₹2.5 lakh and ₹5 lakh
Up to 75% on loans above ₹5 lakh
This loan will only be offered on jewellery and coins. Primary silver, such as silver traded in the bullion market, will not receive the benefits. Industry experts say this policy will benefit low-income families and small households, especially in rural areas where silver is often used as a lifestyle and financial instrument.
