The Reserve Bank of India (RBI) has announced that people can now take loans by pledging silver, just like gold. The new regulation, effective April 1, 2025, allows banks and financial institutions to accept silver as collateral, bringing a fresh wave of opportunity for investors and households alike.
The RBI’s new Gold and Silver Loan Guidelines 2025 aim to ensure greater transparency and tighter control over precious metal–backed lending.
Until now, only a few cooperative banks and NBFCs offered silver loans, keeping the option out of reach for most borrowers. But with the new rule, silver will officially join gold as a mainstream loan asset, giving people more flexibility in meeting financial needs.
The timing is significant — silver prices have soared to record highs, and many Indians have been investing heavily in the metal. The RBI’s decision reflects this growing trend.
However, the central bank has set strict conditions for such loans:
- Only silver jewellery and coins will be accepted as collateral.
- Silver bars, ETFs, and silver-based mutual funds cannot be pledged.
- Loans cannot be taken for purchasing silver itself.
- Industrial users who utilize silver as a raw material are exempt from these limits.
In terms of limits, lenders can accept up to 10 kilograms of silver and up to 1 kilogram of gold as security. For coins, the cap is 500 grams for silver and 50 grams for gold.
With this move, the RBI has effectively expanded the scope of precious metal lending, offering Indians another valuable way to unlock liquidity from their assets.
