You can get bank loans on silver in India from April 2026!

In a landmark policy reform, the Government of India will allow banks and financial institutions to accept silver as loan collateral starting April 2026, opening new doors for rural and middle-class borrowers.

In a major financial reform set to reshape India’s banking landscape, the Government of India has announced that from April 2026, banks and financial institutions will begin accepting silver as collateral for loans, much like gold. This new rule, hailed as a “financial inclusion revolution,” is expected to make borrowing easier for millions of rural and middle-class Indians who traditionally store wealth in silver rather than gold.

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Until now, gold loans dominated India’s secured lending market, offering instant liquidity against the yellow metal. But this move extends similar benefits to silver owners. Borrowers will soon be able to deposit their silver jewellery or bars in banks to secure loans proportional to their value.

Experts believe this will energize the credit ecosystem, especially in rural India, where households own large amounts of silver. “This decision recognizes silver as a viable economic asset,” say financial analysts, noting that silver’s higher liquidity and lower volatility could make it a safer option for lenders.

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For banks and NBFCs, accepting silver adds diversity to their asset portfolios while attracting new customers. For small businesses, farmers, and artisans, it opens up a fresh funding channel. Additionally, economists predict a rise in silver demand and price stability, with the metal gaining a new status as both an investment and a financial instrument.