Paul Merchants Finance Launches Silver‑Backed Loan Product

Paul Merchants Finance Private Limited (PMFPL), a diversified non‑banking financial company (NBFC) within the Paul Merchants Group, announced the launch of a Loan Against Silver product on 18 August 2026. The initiative follows the Reserve Bank of India’s Reserve Bank of India (Lending Against Gold and Silver Collateral) Directions, 2025, which formally authorises eligible regulated lenders to accept silver as collateral for loans, thereby integrating silver‑backed credit into the formal secured‑lending ecosystem.

The new offering targets individuals, proprietors and micro‑, small‑ and medium‑enterprises (MSMEs) seeking liquidity for personal, business or other legitimate financial requirements. Customers can obtain loans ranging from ₹2,000 to ₹15 lakh against eligible silver jewellery, ornaments and approved silver coins, subject to PMFPL’s lending policies and applicable regulatory requirements.

Silver remains a widely held household asset across semi‑urban and rural India, traditionally serving as a form of savings and financial security. Until now, credit against silver has been largely confined to the unorganised sector, where borrowers relied on local financiers and informal channels. PMFPL’s Silver Loan initiative aims to provide an organised, transparent avenue for unlocking the value of existing silver holdings.

Operational rollout: The company commenced Silver Loan operations from its Chandigarh office and plans a phased expansion, establishing additional exclusive Silver Loan branches in other locations. These branches will be dedicated solely to the silver‑backed lending platform, marking PMFPL as the first NBFC in India to set up such exclusive outlets.

Leadership comments:

  • S. Paul, Chairman of Paul Merchants Group, stated that silver “has always had a strong place in Indian households” and that the RBI’s enabling framework presents an opportunity to bring this segment into the formal financial ecosystem through dedicated branches and a specialised platform.
  • Shaibu Cherian, Director of Paul Merchants Finance Chandigarh, described the Silver Loan as “more than a new lending product,” emphasizing its potential to create a new category in secured lending for small‑ticket loans and to become a preferred choice for short‑term, secured credit.

The Silver Loan line will complement PMFPL’s existing secured‑lending portfolio, which includes Secured MSME Loans, Loan Against Property (LAP), Loan Against Shares (LAS) and Corporate Loans. The company envisions the Silver Loan vertical as a scalable growth avenue as it expands its market presence.

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