In a landmark move for digital finance and asset-backed lending, Axis Bank has introduced India’s first gold-backed credit line integrated with UPI (Unified Payments Interface). This innovation allows customers to unlock the value of their gold holdings instantly for everyday transactions.
Key Features of the Gold-Backed UPI Credit
Instant Credit Against Gold
Customers can pledge gold digitally and receive a pre-approved credit line linked to their UPI ID, usable across merchants and platforms.
No Physical Branch Visit
The entire process—from gold valuation to credit activation—is handled through Axis Bank’s mobile app and verified partner network.
Flexible Repayment
Users can repay in EMIs or bullet payments, with interest charged only on the amount used.
RBI-Compliant Lending
The product follows RBI’s guidelines on gold-backed lending and digital KYC norms.
Why This Matters
- Financial Inclusion: Brings formal credit access to gold-rich but cash-poor households
- Digital Lending Innovation: Combines traditional asset-backed lending with India’s fastest-growing payment ecosystem
- Festive Season Boost: Timed ahead of Navratri and Diwali, when gold demand and spending typically spike
What Customers Should Know
- Minimum gold value required: ₹50,000
- Interest rates: Starting from 9.5% p.a. (subject to credit profile)
- Loan tenure: Up to 12 months
- Eligible users: Axis Bank account holders with verified gold holdings via partner vaults or appraisers
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Final Takeaway
Axis Bank’s launch of India’s first gold-backed credit on UPI marks a bold step in blending traditional wealth with modern digital finance. As festive spending rises, this product could redefine how Indians use their gold—not just to save, but to spend smartly.