Gold Backed Credit on UPI:
Axis Bank, in partnership with Freecharge, has launched a new facility that allows customers to access gold-backed credit directly through UPI. This is the first time in India that such a feature has been introduced, making gold loans more convenient and faster.

Gold Backed Credit on UPI:

With this service, Axis Bank customers who have pledged gold can get credit instantly without visiting a branch. Once they complete the onboarding process, they can use UPI to withdraw money as per their need. The most important part is that customers will pay interest only on the amount they use, not on the entire loan limit sanctioned against their gold. This helps reduce extra costs and makes borrowing more affordable.

Through UPI or UPI QR codes, customers can also make direct payments using Freecharge or any other UPI app. This adds flexibility to how they spend their borrowed amount, whether for emergency expenses, business needs, or personal requirements.

According to the National Payments Corporation of India (NPCI), the concept of “Credit Line on UPI” is designed in line with the Reserve Bank of India’s vision to improve credit accessibility. The aim is to provide individuals and small businesses quick access to pre-approved credit from banks, which they can use immediately for transactions through UPI.

This innovative move by Axis Bank is expected to benefit a large number of customers, especially those who need urgent funds but do not want the hassle of lengthy paperwork or high-interest charges. By linking gold loans with UPI, the process becomes digital, transparent, and customer-friendly.

In today’s world, where financial needs can arise at any moment, this new gold-backed credit on UPI gives people the power to use their gold assets more effectively. It combines the trust of gold loans with the ease of digital payments, opening a new chapter in India’s banking system.

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