| Category | Details |
|---|---|
| Effective Date | April 1, 2026 |
| Key Change | RBI permits loans against silver ornaments and coins (previously only gold). |
| Eligible Collateral | - Silver ornaments (max 10 kg per borrower) - Silver coins (max 500 g per borrower) - Gold ornaments (max 1 kg) - Gold coins (max 50 g). |
| Excluded Collateral | Silver bullion (bars/bricks), silver-backed financial assets (ETFs, mutual funds). |
| LTV Ratio (Tiered) | - Up to ₹2 lakh: 85% LTV - ₹2-5 lakh: 80% LTV - Above ₹5 lakh: 75% LTV. |
| Valuation Method | Lower of: 1. 30-day average closing price (purity-based) 2. Previous day's closing price (IBJA/SEBI-regulated exchange). (Excludes gems/stones.) |
| Lenders | Commercial banks, small finance banks, regional rural banks, urban/rural co-operative banks, NBFCs (including housing finance firms). |
| Loan Repayment | Pledged silver must be released within 7 working days post-repayment. Delay penalty: ₹5,000/day. |
| Default Handling | Auction permitted after: - Prior notice to borrower - Public notice if untraceable - 1-month waiting period. Reserve price: ≥90% of current value (85% after 2 failed auctions). |
| Objective | Expand formal credit access, reduce reliance on unregulated lenders, standardize metal-backed loans, and enhance borrower protections. |
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