Axis Bank launches Gold Loan for MSMEs with high loan-to-value, same-day disbursement

New Delhi: Axis Bank on Tuesday launched a Gold Loan product for micro, small and medium enterprises (MSMEs), offering a secured overdraft facility that allows small businesses to raise quick liquidity against their gold assets with minimal documentation.

The facility is available to individual entrepreneurs and sole proprietors, including both existing and new-to-bank customers, and has been rolled out across more than 3,300 gold-loan-enabled branches. Eligible borrowers can receive same-day over-the-counter disbursement, with funds credited directly to their bank accounts.

Loan amounts range from Rs 50,000 to Rs 1 crore, subject to eligibility and internal policies. Documentation requirements include KYC, Udyam Registration or Assist Certificate, and income proof through ITR or GST registration. Structured as an overdraft against gold jewellery, the product requires customers to service only monthly interest payments. Axis Bank said the offering provides a loan-to-value (LTV) of up to 82 per cent, higher than typical industry levels, while remaining

within regulatory norms. The higher LTV is supported by the bank’s risk management framework, customer segmentation, and strict gold valuation and collateral monitoring processes.

Bipin Saraf, Group Executive and Head – Bharat Banking at Axis Bank, said small businesses remain central to India’s economic growth but often face challenges in accessing timely working capital. The new product, he said, combines the benefits of secured lending with speed, flexibility and a simplified, branch-led experience, enabling MSMEs to meet business requirements without disruption.

The launch comes at a time when secured lending and MSME financing are gaining prominence in India’s credit landscape. Higher gold prices and demand for short-tenure liquidity have increased the relevance of gold-backed credit for businesses. Axis Bank said the initiative underlines its focus on delivering high-quality, secured credit solutions to MSMEs in line with evolving market needs.