silver loan
If till now you were thinking of taking loan only against gold, then there is big news for you. The Reserve Bank of India (RBI) has now approved taking loans against silver. That is, if you have silver jewelery or coins in your house, then you can take a loan from a bank or finance company by mortgaging them. Earlier this facility was available only for gold, but now silver has also been included in its scope.
The new rules of RBI have come under ‘Reserve Bank of India Directions 2025’, which will come into effect from April 1, 2026. In these guidelines, the conditions and security rules for giving loan against both gold and silver are mentioned.
Who will give loan against gold and silver?
Now not only big banks, but many institutions will be able to give loans under this facility. This includes commercial banks, small finance banks, regional rural banks, urban and rural co-operative banks, as well as NBFCs and housing finance companies. This means that now people of villages or small towns will also get the opportunity to easily get loan against silver.
On whom will the loan be available and on whom not?
RBI has clarified that the loan will be available only against silver or gold kept in the form of ornaments, jewelery or coins. If you have bullion (ie ingots or pure metal) or financial schemes like gold ETF, mutual fund units, then loan cannot be taken against them.
How much silver or gold can be pledged?
According to the new guidelines, some limits have been set, in which gold jewelery up to a maximum of 1 kg and gold coins up to 50 grams can be pledged. At the same time, a maximum of 10 kg of silver jewelery and 500 grams of silver coins can be pledged. Jewelery or coins weighing more than this cannot be pledged.
How much loan will you get?
RBI has fixed the loan limit so that security is maintained. Suppose, you have silver worth ₹ 1 lakh, then you can get a loan of up to ₹ 85,000 on it.
How will the price of silver be decided?
To decide the price of silver, the bank or finance company will consider the average rate of the last 30 days or the closing price of the previous day, whichever is lower, as the basis. This rate will be taken from India Bullion and Jewelers Association (IBJA) or any recognized commodity exchange. Keep in mind, the value of gems or stones in jewelery will not be included in this.
loan taking process
While taking the loan, the customer will have to get the valuation of silver or gold done in his presence. The bank will prepare a certified report and then all the terms, fees and auction process will be given in writing in the loan agreement. This document will be available in the customer’s preferred or local language. The pledged silver will be kept in a secure locker of the bank and will be checked and audited from time to time.
How many days will it take to get the jewelery back after repaying the loan?
According to RBI, when the customer repays the entire loan, the bank will have to return his jewelery or silver within 7 working days. If the bank delays, it will have to compensate the customer at the rate of ₹ 5,000 per day.