RBI's New Gold & Silver Loan Rules: Uniformity, Transparency, Silver Loans Now Official

• RBI introduced new, uniform guidelines for gold and silver loans in India, effective April 1, 2025, aiming for transparency and consumer protection.
• Silver loans are officially recognized for the first time, expanding access to formal credit for those with silver assets.
• Standardized Loan-to-Value (LTV) ratios are set: up to 85% for loans under ₹2.5 lakhs, 80% for ₹2.5-5 lakhs, and 75% for over ₹5 lakhs.
• Uniform testing methods for gold and silver are now mandatory, requiring borrower presence during valuation to prevent misjudgments.
• Rules include limits on pledged item weight (e.g., 1kg for gold jewelry, 10kg for silver) and strict auction procedures to protect borrowers.

Why It Matters: RBI standardizes gold/silver loans, boosting transparency and consumer protection nationwide.