Loan on Silver Jewellery: The Reserve Bank of India has now approved loans against silver jewelry. This facility will be effective from April 2026. Learn about the rules you need to keep in mind.
Loan on Silver Jewellery: Nowadays, loans have become an important part of our lives. Whether building a house, starting a business, or meeting any essential expense, most people rely on loans. Until now, banks only provided loans against gold as collateral. But now the Reserve Bank of India has provided another major benefit to the common man.
The RBI has decided that loans can now be taken against silver jewelry as collateral. This rule will come into effect from April 2026. This will benefit millions of rural and urban customers, who will now be able to use their silver to meet their financial needs. Let us explain the rules that need to be followed for this.
Rules for Pledging Silver
People in India will now have the option to obtain loans against silver. According to Reserve Bank of India guidelines, a customer can obtain a loan against a maximum of 10 kilograms of silver or 500 grams of silver jewelry. Pledging beyond this limit will not be permitted. This facility will be offered to all banks, cooperative banks, and non-banking financial institutions (NBFCs).
The RBI has directed banks to follow a transparent process similar to that for gold, ensuring proper valuation of pledged silver, compliance with security standards, and informing customers of all regulations. This scheme will provide significant relief to small customers, farmers, and housewives, as they will now be able to access financial assistance against their silver holdings.
Loan Repayment Process
According to the RBI's new guidelines, loans against silver can be repaid within seven years. Interest rates will be determined by banks and will be based on current market conditions. This means that interest rates will apply to silver loans, similar to those charged on gold loans. If the customer fails to repay the loan on time, the bank can auction the pledged silver. A maximum processing fee of ₹5,000 will be charged. This rule will come into effect nationwide in April 2026. This will significantly benefit people.
-
India or Dubai... Where is it easier to buy property? Learn the benefits.
-
Major action taken against Al-Falah University, linked to the Delhi blast case; NAAC issues notice - accreditation exposed!
-
Aadhaar: New Aadhaar app launched; from face authentication, biometric lock to QR sharing, learn all the features here..
-
Chatbots like ChatGPT can also disrupt eating habits, a surprising revelation in recent research.
-
Will 6.9 million pensioners be denied the benefits of the 8th Pay Commission? An employee union has written to the Finance Minister.
