Shriram Finance strengthen gold loan portfolio in Tamil Nadu for Q3FY25

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.

Source : Equity Bulls

Keywords

ShriramFinance GoldLoanPortfolio TamilNadu Q3FY25