Axis Bank has launched a Gold Loan for MSME, a secured overdraft facility aimed at helping small businesses unlock liquidity against their existing gold assets through faster processing, flexible usage, and minimal documentation requirements.
The Gold Loan for MSME offering is available to individual entrepreneurs and sole proprietors, including both existing and new-to-bank customers, and is currently live across more than 3,300 gold-loan-enabled branches nationwide.
Eligible customers can avail over-the-counter (OTC) disbursement on the same day, with funds credited directly to their bank accounts. Loan amounts range from ₹50,000 up to ₹1 crore, depending on eligibility and internal policies.
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Documentation requirements include KYC, Udyam Registration or Assist Certificate, and ITR or GST registration.
The facility is structured as an overdraft against gold jewellery, where borrowers are required to service only the monthly interest, offering flexibility in cash-flow management for small businesses.
The product offers a loan-to-value (LTV) ratio of up to 82%, higher than typical industry offerings, while remaining compliant with regulatory guidelines.
The enhanced LTV is supported by Axis Bank’s risk management frameworks, customer segmentation practices, and gold valuation and collateral monitoring processes, enabling faster credit access while maintaining portfolio discipline.
Gold Loan for MSME Enables Faster Working Capital Access
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.”
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The Gold Loan for MSME offering 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’ demand for short-tenure liquidity, have expanded the relevance of gold-backed business credit.
With this Gold Loan for MSME initiative, Axis Bank aims to strengthen its commitment to supporting MSMEs with secured, high-quality credit solutions aligned with evolving business requirements and India’s changing credit growth dynamics.
