To focus on MSME loans and launch gold loans
Shriram Finance announced today that the Company plans to double its loan book in 3 years in Uttar Pradesh, driven by a focus on MSME loans.
The Assets Under Management (AUM) stand at Rs 10,770 crore (As of Sep-22) and the company plans to expand it to over Rs 20,000 crore in 3 years in UP.
The growth strategy will be focused on growing the MSME loan book since UP has the largest number of MSMEs registered under Udyam and the opportunity to provide finance to MSMEs in the state is significant.
The company has also had tremendous success in financing 80,000 two-wheelers in Oct-Dec 2022 in Uttar Pradesh and the majority of their customers are self-employed. UP is the largest market for 2-wheeler sales compared to other states in 2022 and Shriram Finance has a leadership position in the state.
The growth has been on the back of an economic turnaround, rural markets revival and pick up in micro and small businesses activity. This has in turn driven up demand for financing of two-wheelers, commercial vehicles, and micro, small and medium enterprises (MSMEs).
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The company plans to double the AUM in the next 3 years through a focus on MSME lending and using a cluster-based funding approach for better-targeted lending to MSMEs. UP has the largest number of MSMEs registered under Udyam and the opportunity to provide finance to MSMEs in the state is significant. The company also plans to launch Gold loans in UP. The focus will be to increase penetration among the self-employed segment, specifically those who lack formal income proof and need capital to expand their small businesses. The
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