Axis Bank rolls out high-LTV Gold Loan for MSMEs
Axis Bank has introduced a new Gold Loan product tailored for micro, small and medium enterprises (MSMEs), offering a secured overdraft facility with high loan-to-value (LTV), minimal documentation and same-day disbursement. The scheme is aimed at improving working capital access for small businesses by enabling them to monetise idle gold assets quickly.
The facility is available to individual entrepreneurs and sole proprietors, including both existing and new-to-bank customers, and is currently operational across more than 3,300 gold-loan-enabled branches nationwide.
Under the product structure, eligible borrowers can receive over-the-counter disbursement on the same day, with funds credited directly to their bank accounts. Loan limits range from ₹50,000 to ₹1 crore, subject to eligibility and internal credit norms. The overdraft is backed by pledged gold jewellery, and borrowers are required to service only the monthly interest during the tenure.
Documentation requirements have been kept limited, covering KYC, Udyam Registration or an Assist Certificate, along with Income Tax Returns or GST registration details.
The bank said the product offers an LTV of up to 82 per cent — higher than typical market offerings — while remaining within regulatory guidelines. The elevated LTV is supported by internal risk controls, calibrated customer segmentation and stringent collateral valuation and monitoring processes, enabling faster credit delivery without diluting portfolio discipline.
Bipin Saraf, Group Executive & Head – Bharat Banking, Axis Bank, said small businesses continue to face gaps in timely working capital availability despite their central role in economic growth. He noted that the new gold-backed overdraft facility blends secured lending with speed, flexibility and a simplified, branch-led process, allowing higher credit eligibility within prudent limits.
The launch aligns with a broader shift in the lending market towards secured retail and MSME credit. With gold prices remaining elevated and lenders sharpening their focus on collateral-backed portfolios, gold-based business loans are gaining traction as a short-tenure liquidity option for small enterprises.
Through the new offering, the bank aims to expand its MSME credit portfolio with secured, faster-turnaround products designed to meet evolving business funding needs.
