Axis Bank Launches High-LTV Gold Loans with Same-Day Funding for MSMEs

Axis Bank has reportedly launched a gold-backed loan for micro, small, and medium enterprises (MSMEs), allowing them to raise funds by pledging existing gold assets, as per news reports.  

The product is structured as a secured overdraft, with loan limits ranging from ₹50,000 to ₹1 crore, subject to eligibility and internal credit norms. 

The bank said the facility is meant to address short-term working capital requirements for smaller businesses. 

Available Through Branch Network 

The loan is being offered across more than 3,300 Axis Bank branches. Eligible borrowers can receive the funds on the same day at the branch, with the amount credited directly to their accounts after the necessary checks. 

Applicants are required to submit standard KYC documents, Udyam Registration or an Assist Certificate, along with either income tax returns or GST registration. 

Interest Servicing During the Tenure 

Under the overdraft structure, borrowers pay only the monthly interest. The principal remains available as a limit against the pledged gold, which can be used within the sanctioned amount. 

Such arrangements are typically used for short-tenure borrowing, where businesses may need flexibility in repayments. 

Loan-to-Value Ratio 

The bank said the product offers a loan-to-value ratio of up to 82%, which is higher than the levels seen in many standard gold loan offerings.  

Axis Bank said this is supported by its internal risk management practices, customer segmentation, and regular valuation of the pledged gold. 

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Axis Bank Share Price Performance  

As of February 11, 2026, 11:00 am, Axis Bank Ltd share price was trading at ₹1,350.90, a decrease of 0.43% from the previous closing price. 

Conclusion 

The launch comes at a time when secured MSME lending continues to see demand, supported by higher gold prices and the need for short-term liquidity among small businesses. 

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