THEBUSINESSBYTES BUREAU
BHUBANESWAR, FEBRUARY 15, 2026
Axis Bank has rolled out a new Gold Loan offering tailored for micro,
small and medium enterprises (MSMEs), positioning the secured overdraft product
as a fast-track working capital solution amid rising demand for
collateral-backed credit. The facility enables entrepreneurs to unlock
liquidity against idle gold jewellery with same-day disbursement, minimal
paperwork and a loan-to-value (LTV) ratio of up to 82 per cent, higher than
most prevailing industry benchmarks.
The product is available to individual entrepreneurs and sole
proprietors, including new-to-bank customers, across more than 3,300
gold-loan-enabled branches. Loan sizes range from ₹50,000 to
₹1 crore, with funds credited directly to the borrower’s account through
over-the-counter processing.
Documentation has been kept limited to KYC, Udyam registration or Assist
certificate, and income proof through ITR or GST filings, while borrowers are
required to service only the monthly interest under the overdraft structure.
Axis Bank said the elevated LTV has been enabled by strengthened risk
controls, including stringent gold valuation protocols, tighter customer
segmentation and continuous collateral monitoring, ensuring regulatory
compliance while expanding credit access. The bank is seeking to balance faster
turnaround times with portfolio discipline as it deepens its secured MSME book.
Commenting on the launch, Bipin Saraf, Group Executive and Head of 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 at a time when banks are increasingly pivoting toward secured retail and MSME assets to manage credit risk, while elevated gold prices have enhanced borrowing capacity against the metal. For small enterprises facing cash-flow gaps and short-term funding needs, gold-backed overdrafts are emerging as a quicker alternative to traditional working capital loans.
With the new offering, Axis Bank is sharpening its focus on MSME financing through collateral-led products, aiming to capture growth in a segment that remains under-served yet central to India’s credit expansion and economic activity.
