MONEY
Shriram Finance consolidating gold loan business, expanding market share
- IBJ Bureau
- Mar 19, 2025
Shriram Finance, the flagship company of the diversified conglomerate Shriram Group, is looking to consolidate its gold loan business and increase the market share in the coming quarters.
The company has drawn up plans to introduce gold loan business in more branch networks on the back of organised gold loan market expected to double in the next five years.
“In Q3FY25, the gold loan assets under management (AUM) in Shriram Finance’s Tamil Nadu branches in North Coastal, Kancheepuram and Salem, Krishnagiri and Tiruvallur zones grew significantly. We are now looking to consolidate and grow our market share in the coming quarters, and a part of our plan is to introduce gold loan business in more branches,” company Deputy Managing Director Anbuselvam has said.
The demand for gold has surged as individuals and small businesses seek quick access to funds, aligning with the national trend of rapid expansion in the organised gold loan industry, the company has said in a statement.
The primary customer base in the gold loan segment for Shriram Finance comprises middle-class households, including salaried individuals, small businesses and traders in rural areas.
Shriram Finance offers single, lump-sum payment schemes, quarterly interest payment schemes and monthly EMI payments. It has streamlined documentation formalities and has automated the loan processing system towards ensuring quick and hassle-free loan disbursements.
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