Mumbai : Axis Bank, one of the largest private sector banks in India, launched its Gold Loan offering for MSMEs (Micro, Small, and Medium Enterprises), a secured overdraft facility designed to help small businesses unlock liquidity against their existing gold assets with fast processing, flexibility, and minimal documentation. The product is available to individual entrepreneurs and sole proprietors, both existing and new-to-bank customers, and is live across 3300+ gold-loan-enabled branches.
Eligible
customers can avail over the
counter (OTC) disbursement on the same day, with funds credited directly to their
bank account. Loan amounts range from Rs. 50,000 up to Rs. 1 crore, based on
eligibility and internal policies. Documentation requirements are limited to KYC,
Udyam Registration or Assist Certificate, and ITR or GST registration. The facility
operates as an overdraft against gold jewellery, with borrowers required to
service only the monthly interest.
The product offers a loan-to-value (LTV)
of up to 82%, which is higher than typical industry offerings, while remaining
fully compliant with regulatory guidelines. This enhanced LTV is backed by Axis
Bank’s robust risk management frameworks, disciplined customer segmentation,
and stringent gold valuation and collateral monitoring processes. Together,
these elements enable faster credit access while ensuring portfolio discipline.
Commenting on the launch, Bipin
Saraf, Group Executive & Head Bharat Banking at Axis Bank, said,
“Small businesses are
central to India’s economic momentum, yet timely access to working capital
remains a persistent challenge. Our Gold Loan for MSMEs is designed to address
this gap by combining the strength of secured lending with speed, flexibility,
and a simplified branch-led experience. By leveraging robust risk management
frameworks and disciplined underwriting, we are able to extend higher loan
eligibility against gold within prudent limits, enabling MSMEs to meet their
business needs without disruption.”
The launch comes amid a broader shift in
India’s credit landscape, where secured lending and MSME financing are emerging
as key growth drivers. Rising gold prices, combined with banks’ increasing
focus on secured portfolios and MSMEs’ need for fast, short-tenure liquidity,
have significantly expanded the relevance of gold-backed business credit.
With this initiative, Axis Bank reinforces
its commitment to supporting MSMEs with secured, high-quality credit solutions
that respond to evolving business needs while aligning with the changing
dynamics of India’s credit growth.