Axis Bank launches India's first gold-backed credit line
What's the story
Axis Bank has partnered with Freecharge to launch India's first-ever gold-backed credit line through the Unified Payments Interface (UPI). The innovative product is targeted at MSMEs, self-employed individuals, and merchants. It enables customers to use their gold holdings as collateral for instant and flexible credit. The new offering aims to simplify access to working capital, finance business growth, and meet urgent liquidity needs.
Digital convenience
Digital access to overdraft facilities
The gold-backed credit line also offers digital access to overdraft facilities, with interest charged only on the amount utilized. Customers can pay and repay in real time via UPI or Freecharge, without having to visit a bank branch after onboarding. The launch comes after recent guidelines from the National Payments Corporation of India (NPCI) that enable credit lines on UPI.
Credit accessibility
NPCI guidelines for secured credit
The NPCI's guidelines are aimed at making secured credit more accessible and efficient, thus expanding the reach of digital lending in India. Axis Bank Executive Director Munish Sharda emphasized how this product combines the safety of gold with the convenience of UPI for instant and affordable credit. NPCI Executive Director Sohini Rajola also praised the launch as a demonstration of how UPI-based credit infrastructure can simplify loan access across India.