Axis Bank and Freecharge Partners to Launch India’s First Gold-Backed Credit Line on UPI

Axis Bank has partnered with Freecharge to roll out a pioneering financial product, India’s first gold-backed credit line, accessible through the Unified Payments Interface (UPI). The initiative, tailored for micro, small, and medium enterprises (MSMEs), merchants, and self-employed individuals, aims to make working capital and short-term financing more seamless, digital, and accessible.

How the Product Works

The "Credit on UPI with Gold Loans" offering allows customers to leverage their gold assets to secure a digital overdraft facility. Interest is charged only on the utilised amount, making it a cost-efficient financing option. Once onboarded, customers can instantly make payments and repayments in real time via UPI or the Freecharge platform, without the need for branch visits.

This innovation aligns with the recent framework issued by the National Payments Corporation of India (NPCI), which enables secured credit lines on UPI. The guidelines are intended to broaden digital lending by integrating credit into widely used payment systems.

Industry Perspectives and Impact

As per the news reports, Axis Bank Executive Director Munish Sharda emphasised the product's potential to combine gold's security with UPI's convenience, allowing for instant and cost-effective credit.

Echoing the sentiment, NPCI’s Executive Director, Sohini Rajola, stated that the launch showcases how UPI-based credit infrastructure can democratise access to loans and streamline digital lending across the country.

Read More: Axis Bank Announces Q1 FY26 Results: Strategic Growth, Resilience & Innovation!

Axis Bank Share Price Performance 

As of September 30, 2025, at 10:08 AM, the Axis Bank share price is trading at ₹1,129.20 per share, reflecting a decline of 0.26% from the previous closing price. 

Conclusion

The launch of India’s first gold-backed credit line on UPI marks a new chapter in digital lending. By blending the reliability of gold collateral with the simplicity of UPI, Axis Bank and Freecharge are set to empower small businesses and individuals with quicker, more affordable access to credit, strengthening financial inclusion nationwide.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.