Gold Lending Revolution: Indel Money's Expansion and Innovative Gold-Backed Credit Solutions

Gold loan financier Indel Money is embarking on a fundraising drive, appointing an investment banker to secure between USD 30 to 40 million. This move, aimed at supporting growth initiatives, is seen as a precursor to its public offering planned for FY29. The expansion strategy also includes two equity infusions prior to the IPO.

In a significant step forward, Axis Bank, in partnership with Freecharge, has launched India's first gold-backed credit line accessible via the Unified Payments Interface (UPI). This innovative offering is crafted to tap into the economic value of gold holdings, benefiting micro, small, and medium enterprises (MSMEs), self-employed entrepreneurs, and merchants across diverse geographic locales.

Adding to the gold lending boom, Bank of Baroda (BoB) and IIFL Finance have entered into a co-lending agreement aimed at improving accessibility to gold loans for underserved communities in semi-urban and rural regions. Through this collaboration, IIFL Finance will handle loan origination and servicing, while BoB contributes to the funding, enhancing financial inclusion and affordability.