Axis Bank customers can avail this programme at all branches that give gold loans, without even the need to visit the branch.
Axis Bank, in collaboration with Freecharge, has unveiled Credit on UPI with Gold Loans – India’s first gold-backed credit line accessible through the Unified Payments Interface (UPI). According to the lender, the product is designed to unlock the economic potential of gold assets, especially for micro, small and medium enterprises (MSMEs), self-employed entrepreneurs and merchants across both urban and rural India.
Instant gold-backed credit via UPI
In a partnership with Freecharge, Axis Bank has launched credit on UPI with gold loans. It implies that loans can be made available directly through the Unified Payments Interface (UPI).
How gold-based credit under UPI works
The facility of credit on UPI with gold loans enables users to access fast credit against their gold assets. Axis Bank customers can avail this programme at all branches that give gold loans, without even the need to visit the branch.
Fee structure and interest for UPI gold credit
Notably, under the plan, interest is only levied on the amount that is actually used and not the entire sanctioned limit. These funds can be utilised to meet urgent liquidity requirements. It won’t incur unnecessary interest costs.
Modes to repay or use the UPI gold credit
To make payments and repayments instantly, customers can use UPI or UPI QR using Freecharge or any other UPI app.
Understanding UPI credit lines: An overview
The NPCI website mentions the credit line on UPI as “Credit line on UPI is an innovative financial offering developed in alignment with the Reserve Bank of India’s vision to transform customers’ access to credit. This product empowers individuals and small businesses to obtain pre-sanctioned credit lines from banks, which can be utilized immediately for transactions through UPI.” It further adds that the credit line on the UPI facility “facilitates availability and frictionless usage of credit lines, overdrafts, and retail loans, fostering economic growth and enhancing financial inclusion.”
