RBI's big decision! Now you can even get a loan on silver stored at home, this is the limit

The Reserve Bank of India (RBI) has issued a new circular, allowing people to take loans against silver in addition to gold. This means that silver stored at home is no longer just a piece of jewelry, but can also be a source of support in times of need. Let's explore how to obtain a silver loan and the rules that apply.

The Reserve Bank of India ( RBI ) has made a significant decision that will bring significant relief to the general public. Now, you can take out loans not only against gold but also against silver stored at home. According to a new circular issued by the RBI, this facility will begin on April 1, 2026. This means that you can now secure immediate financial assistance in times of need by pledging your silver jewelry or coins. Let us tell you how much silver you can borrow against.

It often happens that money is suddenly needed for something like a child's education, business, or a medical emergency. In such situations, people resort to personal loans or gold loans. But now, with this move by the RBI, you have another easy option: a silver loan.

Which institutions will provide silver loans?

The RBI stated that nearly all banks and financial institutions, such as commercial banks, small finance banks, and regional rural banks (RRBs), will begin offering this service. Additionally, urban and rural cooperative banks, non-banking financial companies (NBFCs), and housing finance companies will also offer silver loans to their customers. This will make this service easily accessible to everyone, from rural to urban.

How much silver can you pledge?

According to RBI regulations, customers can obtain a loan by pledging a maximum of 10 kilograms of silver jewelry and 500 grams of silver coins. This determines the loan amount, known as the loan-to-value ( LTV ) ratio. This means that the loan amount will be based on the value of the silver you pledge.

Similarly, if you want to take a loan against gold, then as per RBI rules, you cannot pledge more than 1 kg of gold jewellery and 50 grams of gold coins.

What will be the benefit?

This decision will provide the greatest relief to those who possess silver jewelry or coins but lack cash. Now, they will no longer need to sell their jewelry; they can simply pledge it and receive an instant loan. This will significantly benefit small businesses, farmers, and housewives.

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