Shriram Finance targets ₹20,000 crore gold loan portfolio amid EV push

Shriram Finance plans to double the proportion of gold loans within its assets under management to 5 per cent over the next two years, signalling a strategic pivot toward secured lending products that have gained traction among retail borrowers seeking quick access to funds.

The ambition reflects the Chennai-headquartered NBFC's broader strategy to strengthen its retail lending portfolio during a period of heightened credit scrutiny across the financial sector. Gold loans, backed by tangible collateral, represent a lower-risk lending avenue compared to unsecured consumer credit, addressing both regulatory considerations and internal risk management priorities.

Simultaneously, Shriram Finance is intensifying its focus on electric vehicle financing, recognising the sector's rapid growth trajectory in India. The company is actively exploring partnership opportunities with Japanese automakers, seeking to position itself as a preferred financing partner as EV adoption accelerates beyond metropolitan centres into tier-two and tier-three markets.

The dual expansion strategy underscores how non-bank lenders are recalibrating their business models to balance growth imperatives with prudent credit risk management. By anchoring expansion in collateral-backed products while capturing emerging opportunities in the EV segment, Shriram Finance aims to sustain growth momentum in a competitive lending landscape.