Silver Loan: According to the new RBI rule, now you can get a loan not only on gold but also on silver, in which customers can take a loan by pledging a maximum of 10 kg silver jewellery and up to 500 grams of silver coins.
Silver Loan
Silver Loan: According to the new RBI rules, if you have silver and need money, you can now take a loan against silver. New RBI guidelines have been implemented for this purpose, which will be implemented from April 1, 2026. Until now, loans were only given against gold, but now if you have silver jewelry or coins, you can also take a loan by pledging them with a bank or finance company. Once the customer repays the loan, the silver pledged will be returned to the customer within seven days. If the bank or finance company fails to do so, they will have to compensate the customer at the rate of ₹5,000 per day.
If you are taking Silver Loan or gold loan and the jewelry is damaged or its purity is reduced due to the bank’s negligence, the bank or finance company will be responsible for this. Please note that this loan will be available only against silver jewellery and coins. Loan will not be given on pure silver or pure gold. RBI’s only motive behind doing this is that people should look at gold loan or silver loan as a loan in times of need and not as an investment.
How much gold or silver can be mortgaged?
According to the new rules of RBI, loan can be taken not only on gold but also on silver, in which maximum 1 kg of gold jewellery can be mortgaged and maximum 10 kg of silver jewellery can be mortgaged, while loan will be given on mortgage of 50 grams gold coins and 500 grams silver coins.
How much loan will you get?
RBI has fixed the maximum limit for taking loan in its rules, in which 85% loan will be given on loan up to ₹2.5 lakh, up to 80% on loan from ₹2.5 to ₹5 lakh and up to 75% on loan more than ₹500000, that is, if you take a loan on silver worth ₹100000, then you can get a loan of up to ₹85000. The valuation of gold or silver prices is done on the basis of the average closing price of the last 30 days or the previous day’s closing price, whichever is lower.
Who will give loan?
Silver Loan and Gold Loan will be given by big banks and many financial institutions, including commercial banks, small finance banks, regional rural banks, urban and rural cooperative banks, NBFCs companies, all of them will provide loans on gold and silver.
Loan Process
To avail a Silver Loan, the jewellery pledged by you will first be inspected. After this, the bank will prepare a certified valuation report which will contain the terms of the loan agreement, fees, auction process, refund deadline etc. All these documents will be in the local language or preferred language of the customer. Now the silver or gold jewellery pledged by you will be kept safe in the bank locker which will be inspected or audited from time to time.
And when the customer repays the loan amount, the bank will return the pledged jewellery to the customer within 7 working days. If the bank does not do so, then it will have to pay compensation to the customer at the rate of ₹5000 per day.
What happens if the loan amount is not returned?
If you are also taking a silver loan and do not repay it on time, then the bank will have the right to auction those ornaments. For this, the bank will first send a notice to the customer. If the customer does not respond to the notice, then a public notice will be issued and a one-month time period will be given. Now, if the auction takes place, the reserve price of the auction is not less than 90% of the current price of silver.
If the auction fails twice, then the reserve price is reduced to 85%. If the customer does not take back their ornaments for two years, then the bank declares it as unclaimed collateral and then attempts to contact the customer or his heirs, for which a special campaign is also run.
