Synopsis

Shriram Finance plans to double its gold loan contribution to five percent. The company also intends to grow its MSME portfolio to twenty percent. This strategic move focuses on expanding its retail and small business lending segments. Shriram Finance will leverage its extensive branch network for organic growth. The lender sees significant market opportunities in these key areas.

Shriram Finance plans to double its gold loan contribution to five percent. The company also intends to grow its MSME portfolio to twenty percent

Mumbai: Shriram Finance is aiming to double gold loans' contribution in the overall loanbook to 5 per cent over the next three years, joining a slew of lenders ramping up focus in the more secure and high-value retail segment.

The non-bank lender is also keen to increase the share of micro, small and medium enterprises in the overall loan portfolio over the medium term to 20 per cent, a top official has said.

Also Read: Shriram Finance taps foreign banks for cheaper debt

"Around 2.5 per cent of our loan book comes from the gold loan segment now. We want to grow it to 5 per cent in the next three years," its executive vice chairman Umesh Revankar told PTI recently.

As of June 2026, the lender's overall gold loans outstanding had stood at Rs 7,514 crore, accounting for 2.39 per cent of the overall Rs 3.13 lakh crore book. Gold loans' share has been steadily increasing in recent times, and the first quarter of FY27 also saw a 46 per cent growth in portfolio when compared year-on-year and 13 per cent quarter-on-quarter.

In March 2026, the gold loans accounted for 2.19 per cent of the portfolio, which was up from 1.89 per cent in June 2025.

It can be noted that the increase in gold prices, coupled with the inherently high gold holdings in Indian households, is drawing the attention of many lenders toward the segment, prompting a relook that is increasing exposures. The recent past has seen two non-bank lenders -- Tata Capital and Godrej Capital -- acquiring entities or portfolios to enter the gold loans business.

When asked about Shriram's strategy and whether it will consider the acquisition route, Revankar said it would prefer to grow the book organically through its vast network of over 3,200 branches, which already serves 1.03 crore customers.

Also Read: MUFG seals Rs 39,600 crore Shriram Finance deal, takes 20% stake

He said the market opportunity is very big and Shriram, which has traditionally been strong in the auto, farm equipment and commercial vehicle segments, would want to use its pan-India network to grow the business.

On MSMEs, where a lot of banks are active, Shriram has seen relatively much slower growth, but expects to grow its share as it sees the opportunities.

As per company financials, the MSME loans for Shriram, which received over Rs 39,000 crore in capital boost from Japanese major MUFG earlier this year, grew 8 per cent on-year to Rs 41,962 crore as of June. MSMEs are the third-largest segment from an assets under management perspective.

When asked if the focus on MSME is driven by the ability to get more margins or better deploy the capital, Revankar pointed to the opportunity it sees in the segment being the driver.

Meanwhile, the construction equipment segment, the company's fourth biggest portfolio, witnessed a 25.17 per cent decline in the AUM to Rs 12,373 crore in the quarter ended June.