Gold
loan ticket size nearly doubles to Rs.60,000
Shriram
Finance strengthen gold loan portfolio in Tamil Nadu for Q3FY25
· Gold
loan ticket size nearly doubles.
· Plans
to expand Gold Loan Business in existing branches from 300 to 400 in the next
few months.
Chennai, 18.03.2025 –
Shriram Finance Limited (SFL), the flagship company of the Shriram Group,
continues to witness strong growth in its gold loan portfolio in Tamil Nadu. The
organized gold loan market in India is expected to double in the next five
years, reaching a staggering ₹14.19 lakh crore. On the other hand, the demand
has surged as individuals and small businesses seek quick access to funds,
aligning with the broader national trend of rapid expansion in the organized
gold loan market.
Mr. Anbuselvam, Deputy Managing Director,
Shriram Finance Ltd., speaking about the Gold Loan business in
Tamilnadu (North) said, “In Q3FY25, the gold loan AUM in SFL’s Tamil Nadu
branches in North Coastal, Kanchi and Salem, Krishnagiri & Thiruvallur 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.’
SFL’s primary customer base in the gold loan
segment consists of middle-class households, including salaried individuals,
small businesses, traders in rural areas. A significant rise in gold prices has
led to an increase in the average ticket size of gold loans, which has nearly
doubled from ₹0.33 lakh last year to ₹0.60 lakh in the current period.
Additionally, the average loan tenure has reduced from 10 months to 7-8 months,
indicating improved cash flow among borrowers.
SFL offers a diverse range of gold loan
schemes tailored to meet the varied financial needs of its customers. These
include single lump sum payment schemes, monthly/quarterly interest payment
schemes, and monthly EMI payment schemes. The company has streamlined
documentation formalities and fully automated the loan processing system to ensure
quick and hassle-free loan disbursement.
Shriram Finance remains committed to
empowering individuals and businesses by providing convenient and efficient
financial solutions. The company's continued growth in the gold loan segment
reaffirms its position as a trusted financial partner for customers in need of
timely credit.
About Shriram Finance Limited:
Shriram Finance Limited is the flagship
company of the Shriram group which has significant presence in Consumer
Finance, Life Insurance, General Insurance, Stock Broking and Distribution
businesses. Shriram Finance Limited is one of India’s largest retail asset
financing Non-Banking Finance Companies (NBFC) with Assets under Management
(AUM) above Rs. 2.54 trillion.
Established in 1979, Shriram Finance is a
holistic finance provider catering to the needs of Small Road Transport
Operators and small business owners and is a leader in organised financing of
pre-owned commercial vehicles and two wheelers. It has vertically integrated
business model and offers financing number of products which include passenger
commercial vehicles, loans to micro and small and medium enterprises (MSMEs),
tractors & farm equipment, gold, personal loans and working capital loans
etc.
Over last 45 years, it has developed strong
competencies in the areas of loan origination, valuation of pre-owned
commercial vehicles and other assets, and collections. It has a pan India
presence with network of 3,196 branches and an employee strength of 79,405
servicing to 94.36 lakhs of customers.
