The Reserve Bank of India (RBI) has announced new rules that will make it easier for people and businesses to take loans using silver as security (collateral), just like they can with gold. These rules are called the RBI (Gold and Silver (Loans) Directions, 2025) and will start from April 1, 2026.
Who can give these loans?
The following lenders can offer loans against gold or silver:
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Commercial banks (including small finance and regional rural banks)
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Urban and rural co-operative banks
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NBFCs (Non-Banking Financial Companies)
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Housing Finance Companies
Who can take these loans?
- Anyone who owns gold or silver jewellery, ornaments, or coins.
- You can’t pledge raw bullion (bars/ingots) or financial products like gold/silver ETFs or mutual funds.
- The ownership of the metal must be clear — no doubtful or disputed ownership.
Weight limits for pledging
A single borrower can pledge up to the following limits. Individual can’t get a loan if the jewellery or coins weigh more than these limits.
- Gold ornaments: up to 1 kilogram (kg)
- Silver ornaments: up to 10 kilograms (kg)
- Gold coins: up to 50 grams (g)
- Silver coins: up to 500 grams (g)
What is the Valuation process?
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Standard testing and valuation procedures across all branches.
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The borrower must be present when the gold/silver is tested.
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A valuation certificate will be given.
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The loan agreement must list all charges, auction rules, and refund timelines.
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Communication must be in the local or preferred language.
Starting in 2026, if individual own silver jewelry or coins, individual will be able to get a loan against them more easily and safely, thanks to these new RBI guidelines.RBI’s new rules make loans against silver as easy and safe as gold loans by setting clear limits and valuation rules, ensuring transparency, and protecting borrowers’ rights (including compensation for delays).
