Just like gold, silver will soon help you get instant financial support. Starting April 1, 2026, individuals will be able to take loans against their silver jewellery and coins, as per new guidelines issued by the Reserve Bank of India (RBI).
Silver loans now allowed
Under the revised lending rules, banks and financial institutions — including commercial banks, cooperative banks, and small finance banks — can offer loans backed by silver, similar to gold loans. The move aims to widen access to credit, especially for those who own silver but not gold.
How much silver can be pledged
Borrowers can pledge up to 10 kg of silver as collateral, while silver coins up to 500 grams will also be eligible. However, silver bars or investment products such as ETFs or mutual funds will not qualify for loans.
Loan amount and repayment
If you pledge silver worth ₹2.5 lakh, you can get up to 85% of its value as a loan. For silver worth ₹5 lakh, the loan-to-value (LTV) ratio will be limited to 75%.
After full repayment, lenders must return the pledged silver within seven working days, or face a ₹5,000 daily penalty for delays. In case of default, the bank can sell the pledged silver to recover dues.
The introduction of silver-backed loans marks a major step towards financial inclusion, giving households an additional option to unlock the value of their precious metals in times of need.