According to the RBI, you can now take a loan not only against gold but also against silver stored at home. The implementation of this facility means that you will now be able to take a loan against silver in an emergency.

The Reserve Bank of India recently announced a new rule, providing significant relief to the general public. According to the RBI, you will now be able to take a loan not only against gold but also against silver stored at home. This facility will begin on April 1, 2026. The implementation of this facility means that if you suddenly need money, whether for your children's education, business investment, or a medical emergency, you can easily obtain a loan by mortgaging your silver jewelry or coins instead of selling them. So, let us explain today what the RBI's rule is regarding loans against silver and how much you can get against silver.

Who will provide loans against silver?

According to the RBI circular, almost all major banks and financial institutions in the country will now offer silver loans. These include commercial banks, small finance banks, regional rural banks, urban and rural cooperative banks, and non-banking financial companies and housing finance companies. This will benefit everyone, from rural to urban, and will now be able to easily access loans against silver, and the general public will now be able to take loans against silver instead of gold.

How much silver must be pledged, and how much loan amount will be available?

The RBI has clearly established the rules for silver loans. According to the RBI, customers can obtain a loan by pledging a maximum of 10 kilograms of silver jewelry and 500 grams of silver coins. Banks will evaluate these jewelry and coins and determine the loan amount based on their current market value. This entire process will be based on a loan-to-value ratio, meaning that the loan amount will be based on the value of the silver pledged. According to reports, if you pledge silver worth up to ₹2.5 lakh, you can receive a loan of approximately 85% of its value. If the silver is worth up to ₹5 lakh, you can receive a loan of up to 75%. However, this facility will not be available on all types of silver. Loans cannot be taken against investment schemes such as silver bricks, silver ETFs, or mutual funds.

Regulations for Loan Repayment and Silver Return

As per RBI guidelines, once the customer repays the full loan amount, the bank or financial institution must return the silver within seven working days. Any delay may result in a penalty of ₹5,000 per day. If the customer fails to repay the loan on time, the bank will have the right to sell the pledged silver to recover its funds.

Who will benefit the most?

It is believed that small businesses, farmers, and homemakers will benefit the most from this RBI decision. Those who own silver jewelry or coins but are short on funds will now be able to easily obtain loans without selling them. This will provide financial assistance to people in both rural and urban areas during emergencies.