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Axis Bank, one of India’s largest private sector banks, has partnered with Freecharge to launch Credit on UPI with Gold Loans, India’s first gold-backed credit line via UPI.This innovative product targets MSMEs, self-employed entrepreneurs, and merchants in both urban and rural India.
It allows customers to access instant credit against their gold holdings.
The product is available to existing Axis Bank customers at all branches processing gold loans.It offers a fully digital journey for utilization and repayments, eliminating branch visits post-onboarding.Interest is charged only on the utilized amount, making it a cost-effective credit solution.Payments and repayments can be made instantly via UPI or UPI QR using Freecharge or any UPI app.Munish Sharda, Executive Director, Axis Bank, said the product sets a new standard for secured digital credit.He emphasized the combination of gold reliability and UPI convenience for instant, flexible credit.The launch aligns with NPCI guidelines enabling Credit Lines on UPI, advancing India’s digital payments ecosystem.
Sohini Rajola, Executive Director – Growth, NPCI, highlighted that the product simplifies and expands access to credit.The partnership leverages Axis Bank’s credit leadership and Freecharge’s seamless digital onboarding.Together, they have introduced a simple, trustworthy, and widely accessible gold-backed credit product.The product supports financial inclusion and reduces dependency on manual processes.It raises the bar for digital lending in India, combining innovation, convenience, and security.