Axis Bank introduces gold-backed loans for MSMEs with high LTV and same-day disbursement

Axis Bank has launched a gold loan facility aimed at micro, small, and medium enterprises (MSMEs), allowing borrowers to access funds against their existing gold assets. The secured overdraft facility offers loan amounts ranging from ₹50,000 to ₹1 crore, depending on eligibility and internal policies, and is available across over 3,300 branches.

The facility provides same-day over-the-counter disbursement, with funds credited directly to the borrower’s account. Documentation requirements include standard KYC, Udyam Registration or Assist Certificate, and ITR or GST registration. Borrowers are required to pay only monthly interest, with the principal remaining as an overdraft against the pledged gold.

The loan-to-value (LTV) ratio for the product goes up to 82%, which is higher than typical industry standards. Axis Bank stated that the higher LTV is supported by its risk management practices, customer segmentation, and gold valuation and monitoring processes.

Bipin Saraf, Group Executive & Head of Bharat Banking at Axis Bank, said the initiative aims to help MSMEs access working capital more quickly while adhering to regulatory guidelines.

The launch comes as secured lending and MSME financing become more prominent in India’s credit landscape, with rising gold prices and the demand for short-tenure liquidity driving interest in gold-backed credit.