Divya Agarwal
Mr. Shaibu Cherian, Director, Paul Merchants Finance
Chandigarh [India], August 18: Paul Merchants Finance Private Limited (PMFPL), a diversified NBFC and part of the Paul Merchants Group, has launched its Loan Against Silver product. The launch follows the Reserve Bank of India’s introduction of the Reserve Bank of India (Lending Against Gold and Silver Collateral) Directions, 2025, which formally enabled eligible regulated lenders to accept silver as collateral for loans. The move by the RBI has opened the way for silver to become part of the formal secured lending ecosystem in India.
With this launch, PMFPL aims to bring an organised and transparent lending model to a segment that has traditionally been dominated by the unorganised sector, where customers have largely depended on local financiers and informal channels to raise credit against their silver assets.
Silver has traditionally been an important household asset in India, particularly across semi-urban and rural markets, where silver jewellery and ornaments are widely held as a form of savings and financial security. Despite its widespread ownership, access to formal credit against silver has remained largely unavailable. PMFPL’s Silver Loan initiative seeks to bridge this gap by providing customers with access to credit against an asset they already own.
Speaking on the launch, Mr. S. Paul, Chairman, Paul Merchants Group, said, “Silver has always had a strong place in Indian households, particularly in markets where it is an important form of savings and financial security. However, lending against silver has largely remained in the unorganised sector. With the RBI enabling lending against silver as collateral, we see an opportunity to bring this segment into the formal financial ecosystem. At Paul Merchants, we have chosen to make a meaningful beginning by establishing exclusive Silver Loan branches and creating a specialised lending platform around silver. We believe this can provide customers with a more organised and transparent avenue to access credit against an asset they already own.”
The Company has commenced its Silver Loan operations from Chandigarh and plans to expand the product to other locations in a phased manner, with more dedicated Silver Loan branches being established to provide customers with an organised platform for availing loans against their silver assets. Under this offering, customers can avail loans ranging from ₹2,000 to ₹15 lakh, against eligible silver jewellery, ornaments and approved silver coins, subject to the company’s lending policies and applicable regulatory requirements. The product is intended to cater to individuals, proprietors and MSMEs looking for liquidity for personal, business and other legitimate financial requirements.
Commenting on the business opportunity, Shaibu Cherian, Director, Paul Merchants Finance, said, “We see Silver Loan as more than a new lending product. It has the potential to create a new category in secured lending, particularly for customers looking for small-ticket loans to meet their immediate financial requirements. Our aim is to make Silver Loan a convenient and trusted option for short-term funding, allowing customers to unlock the value of their silver when they need it. We believe this segment has significant potential to grow and, in the future, become a preferred choice for small-ticket, secured credit.”
The Silver Loan business will form an important part of PMFPL’s diversified secured lending portfolio, alongside its existing lending activities comprising Secured MSME Loans, Loan Against Property (LAP), Loan Against Shares (LAS) and Corporate Loans. The company intends to develop Silver Loans as a scalable lending vertical as it expands its presence across markets.
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