8:50 PM, Delhi- The Reserve Bank of India (RBI) has made one of the biggest changes in India’s household finance system — for the first time, you will be able to take a loan on silver, just like you take a gold loan today.
But the natural question is: From when will these silver loans start? And more importantly: What interest rates should borrowers expect, how will EMI work, and what will change between 2026 and 2030?
Let’s break it down easily.
When will silver loans actually start?
RBI has already issued the full rulebook under the Lending Against Gold and Silver Collateral Directions, 2025.
Banks and NBFCs have time to prepare — and they must start silver loans by April 1, 2026.
From that date, silver jewellery and silver coins will be accepted as collateral across India. No bars, no bullion — only household silver.
Why is RBI doing this
RBI knows one simple truth: More Indians own silver than gold.
Silver is cheaper, more accessible, and widely used in rural households.
By allowing silver loans, the RBI is giving millions of small families a safer way to borrow money without selling their savings.
Now, instead of selling silver in emergencies, people can simply borrow against it.
How much loan can you get on your silver?
RBI has put a basic structure so banks don’t over-lend or cause misuse.
Typical loan amounts will fall in these ranges:
- Small loans: ₹20,000 – ₹1 lakh
- Medium loans: ₹1 lakh – ₹2.5 lakh
- Max limit: depends on your silver weight and purity, but lenders usually won’t go beyond a few lakh rupees.
Silver has more price swings than gold, so lenders will keep slightly lower margins and tighter checks.
Expected interest rate for silver loans
RBI has not fixed an exact rate — banks will decide.
But based on gold loan trends, here’s what borrowers can expect:
- Banks: around 8% to 12% per year
- Private Banks: 9% to 13% per year
- NBFCs: around 11% to 16%+ per year in early years
- Smaller lenders may start even higher because silver is bulkier to store and insure.
Rates will settle after the first 12–18 months, once lenders understand silver behaviour in lending.
EMI tenure — how long can you take the loan?
Silver loan tenure will be similar to gold loans:
- Short-term: 3 months
- Regular: 6–12 months
- Longer EMIs: up to 3 years
Shorter loans will have lower interest because the risk is less. Longer EMIs mean smaller monthly payments but higher total interest.
What will happen from 2026 to 2030?
RBI’s silver-loan move is not just a one-year decision — it’s a multi-year strategy. Expect these changes:
2026–27: Rollout phase
- Banks set up silver-handling vaults
- NBFCs launch silver loan branches
- Early rates are slightly high as lenders test the market
2027–28: Massive adoption
- Rural families start using silver loans for farming, shop inventory and emergencies
- Digital silver loan apps may appear
- Interest rates become more stable
2028–30: Silver becomes a mainstream credit tool
- Silver loans are becoming as common as gold loans
- More competition → lower interest rates
- Banks may introduce doorstep silver loan services
- Government schemes may link silver loans with agriculture or MSME funding
Industry reports project that the formal silver loan market in India could reach approximately ₹50,000 crore by 2028 to 2030.
EaseMoney Take
Silver is no longer the sidekick to gold. It has moved from lockers into the heart of modern life — powering EVs, solar panels, chips and even AI systems. And now, from April 2026, it finally enters India’s formal credit system.
By allowing silver loans, the RBI gives households a safer way to access money without selling their savings.
As banks adapt and competition grows, silver could quietly transform small borrowing in India, turning a familiar household metal into real financial strength for everyday families.
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