Here Is What the RBI Just Changed
Effective April 1, 2026 the RBI officially allows banks and NBFCs to offer loans against silver jewellery, ornaments, and coins, giving borrowers access to liquidity from a previously ineligible asset.
What Counts and What Doesn’t: Silver Eligibility
Silver jewellery, ornaments, and coins with minimum 90% purity are eligible. Silver bars, bullion, bricks, and ETFs are explicitly excluded and cannot be used as collateral regardless of their intrinsic value.
How Much Can You Borrow Against Silver
Borrowers can pledge up to 10 kg of silver ornaments or 500g of coins per borrower across all lenders combined, preventing speculative exposure in the silver lending market.
Silver Loan LTV Explained
Loans up to Rs 2.5 lakh get 85% LTV. Between Rs 2.5 lakh and Rs 5 lakh it is 80%. Above Rs 5 lakh the maximum LTV drops to 75%.
Interest Rates and Loan Terms for Silver Loans
Silver loans carry higher interest rates than gold loans due to price volatility. Rates vary across commercial banks, co-operative banks, and NBFCs depending on loan amount and prevailing market conditions.
Silver Loan Lenders & Application Process
Commercial banks, co-operative banks, regional rural banks, and NBFCs can offer silver loans. The process mirrors a gold loan – pledge silver, get purity tested, receive valuation, and collect disbursement instantly.
Silver vs Gold Loan: Key Differences
Silver offers higher LTV of 85% versus gold’s 75% but carries higher interest rates and limited lender acceptance making gold the more accessible and cost effective collateral for most borrowers.
Coins or Jewellery: Which Is Better for a Silver Loan
Silver loans suit borrowers with large idle silver holdings needing short term liquidity. For instant cash at the lowest interest rate gold loans remain the smarter and more reliable choice.
Disclaimer: The information provided on this website is for general informational purposes only and should not be considered financial or legal advice. Please consult with a qualified financial advisor before making any decisions.
