In order to emphasize the importance of silver in the savings of Indian families, the Reserve Bank of India (RBI) has released new guidelines that will come into effect from April 1, 2026.
Through these guidelines, all financial institutions including banks, non-banking financial companies (NBFCs), and cooperative banks can now provide loans against silver ornaments, jewelry, and coins, just like they do for gold, thereby making it easier for individuals to obtain loans.
This initiative will greatly benefit rural and small traders by facilitating access to credit.
The RBI has decided on clear high loan-to-value ratios for the collateral of loans, determining the loan amounts and the minimum value of the collateral.
An individual’s minimum turnover: An individual can now pledge silver ornaments up to 10 kilograms and silver coins up to 500 grams, as collateral. This equates to 1 kilogram of gold ornaments and 50 grams of gold coins.
Loan-to-Value ratio (LTV): The LTV decides how much loan one can avail against the value of the collateral pledged.
Deixe um comentário