Silver Loan Branches: Paul Merchants Finance Is First NBFC
Why in the news
An NBFC has set up branches that deal exclusively in loans against silver, a step that brings silver-backed borrowing deeper into the regulated system.
Key facts
- Company: Paul Merchants Finance, the first NBFC in India with exclusive silver-loan branches.
- Regulatory base: RBI’s Lending Against Gold and Silver Collateral Directions, 2025.
- First location: Chandigarh.
- Loan size: from ₹2,000 up to ₹15 lakh.
- Collateral: eligible silver jewellery, ornaments and approved silver coins.
Why it matters
- Silver-backed lending moves further into the formal, regulated financial system.
- The branches show NBFCs acting on the RBI’s directions covering gold and silver collateral.
Quick card
| Item | Detail |
|---|---|
| Lender type | NBFC |
| City | Chandigarh |
| Ticket range | ₹2,000 – ₹15 lakh |
Exam angle
- Regulator’s directions: Lending Against Gold and Silver Collateral Directions, 2025.
- Distinction: first NBFC with exclusive silver loan branches.
- Starting city: Chandigarh.