Axis Bank, in collaboration with Freecharge, has launched India’s first gold-backed credit line integrated with UPI, marking a significant step in digital banking. Launched on 29 September 2025 in Bengaluru, this product allows customers to access instant credit against their gold holdings through a completely digital process, aligning with NPCI guidelines. The initiative aims to boost digital payments while providing a secure, convenient credit facility for individuals and businesses.
The credit line is designed for:
MSMEs (Micro, Small & Medium Enterprises)
Self-employed individuals
Small traders and business owners
Eligible Axis Bank customers with existing gold loans can now leverage their gold holdings to obtain instant credit. The key benefits include:
Completely digital onboarding with no branch visit required
Flexible overdraft facility with interest charged only on the used amount
Real-time payments and repayments via UPI or UPI QR codes
Seamless cash flow management through Freecharge or any UPI-enabled app
Axis Bank’s Executive Director, Munish Sharda, highlighted that this product combines the reliability of gold with the convenience of UPI, creating a new benchmark for digital credit in India.
The process is fast and simple:
Axis Bank customers register via the Freecharge app.
Gold loan details are verified through linked bank branches.
Upon approval, a pre-sanctioned credit line is connected to UPI.
Customers can make instant payments to UPI-enabled merchants.
Example:
A small trader with gold jewelry needs ₹50,000 for inventory. The trader withdraws the required amount via the credit line and pays the supplier directly through UPI. Interest is charged only on the ₹50,000 used, not on the full credit line. Once sales revenue is received, repayment is made via the Freecharge app. The process eliminates manual steps, offering full digital tracking and transparency.
Instant liquidity without creating a new loan application
Reduced paperwork and faster credit access
Cost-effective borrowing with interest only on utilized credit
Secure digital transactions aligned with NPCI and RBI guidelines
Enhances financial inclusion by activating gold assets as a financial tool
NPCI’s Growth Executive Director, Sohini Rajola, emphasized that this infrastructure supports wider and secure availability of credit, benefiting both urban and rural customers.
This product marks a major milestone in India’s digital financial ecosystem. Combining Axis Bank’s credit expertise with Freecharge’s digital platform, the gold-backed credit line:
Converts gold assets into a financial instrument beyond jewelry
Provides quick liquidity to small businesses
Strengthens digital payment adoption across sectors
Ensures RBI-compliant credit access for retail and business borrowers
The initiative is expected to enhance financial inclusion, especially in semi-urban and rural areas, by enabling gold to serve as collateral for instant and affordable digital credit.
Conclusion
Axis Bank’s gold-backed UPI credit is a revolutionary step in Indian banking, allowing businesses and individuals to leverage their gold holdings digitally. By combining secure gold loans with real-time UPI payments, this product simplifies credit access, reduces manual processes, and strengthens India’s digital lending ecosystem.