Shriram Finance aims to double the share of gold loans in its overall loan book to 5% over the next three years, according to Executive Vice Chairman Umesh Revankar.
The lender also plans to increase the contribution of MSME loans to 20% of its portfolio, betting on long-term growth opportunities in the segment.
Shriram said it will expand the gold loan business organically through its network of more than 3,200 branches instead of pursuing acquisitions.
Shriram Fin Aims to Double Gold Loan Share in Loan Book in 3 Years
The non-bank lender plans to expand its gold loan and MSME businesses over the medium term as it looks to diversify its loan portfolio
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Shriram Finance is aiming to double gold loans' contribution in the overall loan book to 5% 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%, a top official has said.
"Around 2.5% of our loan book comes from the gold loan segment now. We want to grow it to 5% 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 stood at ₹7,514 crore, accounting for 2.39% of the overall ₹3.13 lakh crore loan book. Gold loans' share has been steadily increasing in recent times, and the first quarter of FY27 also saw a 46% year-on-year (YoY) growth in the portfolio and 13% quarter-on-quarter (QoQ) growth.
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In March 2026, gold loans accounted for 2.19% of the portfolio, up from 1.89% in June 2025.
The increase in gold prices, coupled with the inherently high gold holdings in Indian households, is drawing the attention of many lenders towards the segment, prompting a relook that is increasing exposure. The recent past has seen two non-bank lenders—Tata Capital and Godrej Capital—acquiring entities or portfolios to enter the gold loan business.
When asked about Shriram's strategy and whether it would consider the acquisition route, Revankar said the company would prefer to grow the book organically through its vast network of over 3,200 branches, which already serves 1.03 crore customers.
He said the market opportunity is very large and Shriram, which has traditionally been strong in the auto, farm equipment and commercial vehicle segments, wants to leverage its pan-India network to expand the business.
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On MSMEs, where several banks are active, Shriram has seen relatively slower growth but expects to increase its share as it sees significant opportunities in the segment.
As per company financials, the MSME loan portfolio, for which Shriram received over ₹39,000 crore in capital infusion from Japanese major MUFG earlier this year, grew 8% YoY to ₹41,962 crore as of June. MSMEs are the company's third-largest segment by assets under management (AUM).
When asked whether the focus on MSMEs is driven by higher margins or better capital deployment, Revankar said the growth opportunity in the segment is the primary driver.
Meanwhile, the construction equipment segment, the company's fourth-largest portfolio, witnessed a 25.17% decline in AUM to ₹12,373 crore in the quarter ended June.