Silver Loan: Similar to gold loans, the government has introduced new regulations for loans secured by silver. According to the RBI’s updated guidelines, starting April 1, 2026, individuals can now obtain loans against silver, referred to as silver loans. Today, we will clarify how this silver loan functions and the amount of loan that can be secured based on the quantity of silver. Many individuals believe they will receive a loan equivalent to the entire value of their silver, but the truth is somewhat different. Let’s explore the specifics.
How much loan can be availed against silver?
If you’re considering taking a loan against your silver, it’s important to understand that you won’t receive the complete value of your silver when securing a loan. Typically, banks and financial institutions provide loans that cover only 75 to 85 percent of its value. For instance, if your silver is valued at Rs 1 lakh, you can expect to secure a loan ranging from Rs 75,000 to Rs 85,000 against it.
Lenders, including banks, tend to be cautious when offering loans against silver. This caution arises mainly from the volatile price changes of silver, its higher risk compared to gold, and the potential for future price drops. As a result, various lenders might assign different valuations to the same piece of silver.
What kind of silver is available for loan?
If your silver is in the form of jewelry or coins, you are likely to secure a loan without much hassle. However, if your silver consists of utensils or decorative pieces, many lenders may decline to accept it. Additionally, many people think that possessing more silver will lead to a larger loan amount, but this is not always true. Silver holds significantly less value than gold, which means lenders may impose internal limits.
Amid ongoing tensions in West Asia, gold and silver prices fell on Monday at the bullion market. Silver prices fell by Rs 2,290 to Rs 2.31 lakh per kg, while gold prices fell by Rs1,100 to Rs 1.48 lakh per 10 grams. In the capital Delhi, the price of 24 carat gold has come down to Rs 1,51,070 per 10 grams, whereas in Mumbai its price was recorded at Rs 1,50,920 per 10 grams. Interestingly, despite the fall, 24 carat gold has become costlier by about Rs 2,860 in the last one week. At the same time, the price of 22 carat gold has also increased by about Rs 2,600. Last week on Friday, the price of gold remained stable in the bullion market of Delhi and it remained at Rs 1,51,500 per 10 grams.
