Now you can take loan from the bank on silver jewellery, know which rules have to be followed?

Loan On Silver Jewellery: Nowadays loan has become an important part of our life. If someone wants to build a house or start a business or meet some important expense. Most people depend on loans only. Till now banks used to give loans only against the pledge of gold. But now the Reserve Bank of India has given another big facility to the common people.

RBI has decided that now loan can be taken from the bank even by mortgaging silver jewellery. This rule will be applicable from April 2026. Lakhs of rural and urban customers will benefit from this. Who will now be able to use their silver to fulfill their financial needs. Let us tell you which rules will have to be followed for this.

Silver Pledge Rules

Now people in the country will have the facility of loan by pledging their silver. According to the guidelines of the Reserve Bank of India, a customer can take a loan by pledging a maximum of 10 kg of silver or 500 grams of silver jewellery. Pledge exceeding this limit will not be allowed. This facility will be provided to all banks, co-operative banks and non-banking financial institutions i.e. NBFCs.

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RBI has directed banks to adopt a transparent process like gold, in which the pledged silver is properly valued, security standards are met and all the rules are informed to the customer. This scheme will provide great relief to small customers, farmers and housewives. Because now these people will be able to get financial help by mortgaging their silver.

loan repayment process

According to the new guidelines of RBI, the loan against silver can be repaid in seven years. Interest rates will be decided by the banks and these rates will be based on the current market conditions. That means interest is charged on gold loan. Similarly, now this will be applicable on silver loan also. If the customer is unable to repay the loan on time.

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So the bank can auction the pledged silver. During this period, a maximum processing fee of up to Rs 5,000 can be charged. This rule will be implemented across the country from April 2026. After its implementation, people will benefit a lot.

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