North India Statesman
[ad_1]
Now you will not only be able to take gold loan but will also be able to take loan against silver like gold. For this, the Reserve Bank of India has issued a new circular. Its name is Reserve Bank of India (Loans against Gold and Silver Collateral) Directions, 2025. Some special rules have been mentioned in it. Which will come into effect from 1 April 2026. Under these rules, it will be easy to take loan against silver.
These banks and companies will give loans against silver
- Urban and Rural Cooperative Bank
- NBFC Non-Banking Finance Companies and Housing Finance Companies
Who can take loan against silver?
The Reserve Bank has banned giving loans against gold or silver (bullion) for certain reasons. This has been done so that there is no major disruption in the economy. But banks and companies can give loans to customers by pledging gold ornaments, jewelery and coins. This will help people to meet their small and big financial needs.
How much gold and silver can be pledged?
As per the Reserve Bank circular, the total weight of jewelery pledged for all loans given to a single customer should not exceed the following limits:
- Gold jewellery: Not more than 1 kg.
- Silver Jewellery: Not more than 10 Kgs.
- Gold coins: Not more than 50 grams.
- Silver coins: Not more than 500 grams.
How much loan amount will you get?
The loan amount will be based on the loan-to-value (LTV) ratio. It means how much loan you can take against your pledged gold or silver. It shows how much loan you can get for every ₹100 of this precious metal.
If the loan amount is up to ₹2.5 lakh, the maximum LTV will be 85%. That means you can get a loan up to 85% of the value of your gold and silver. Similarly, if the loan amount is between ₹2.5 lakh to ₹5 lakh, the maximum LTV will be 80%. If the loan amount is more than ₹5 lakh, the maximum LTV will be 75%.
