Archive · 1 Sep 2026
Shriram Finance Targets Japanese Supplier Ecosystem After MUFG Investment
Shriram Finance is a company that lends money to people and businesses.
It received investment and support from MUFG, a Japanese financial-services group.
The partnership may help Shriram Finance lend to businesses connected to Japanese vehicle companies in India.
These businesses include dealers, suppliers and stockists.
Shriram also wants to offer new types of business loans by October 1.
It is lending more money for new vehicles, not just used vehicles.
The company plans to hire more workers and open more branches.
It also wants to grow its gold-loan business but does not want to become a bank.
Shriram Finance is targeting 18% growth this fiscal year, supported by MUFG’s investment and lower borrowing costs.
The company is exploring financing for dealers, sub-dealers, stockists and component suppliers linked to Japanese manufacturers in India.
Supply-chain, inventory and dealer-financing products are planned for launch by October 1.
New-vehicle financing has risen to 20% of vehicle lending from about 10%, while Tamil Nadu is a major growth market.
Shriram Finance plans to expand its workforce, branches and gold-loan network while remaining an NBFC rather than seeking a banking licence.
- Who
- Shriram Finance, MUFG and Executive Vice Chairman Umesh Revankar.
- What
- Shriram Finance is expanding lending and product plans following MUFG’s investment.
- When
- The plans were discussed on Tuesday and published on September 1, 2026; new financing products are planned by October 1.
- Where
- India, including Japanese manufacturers’ business ecosystems and Tamil Nadu.
- Why
- MUFG’s capital, lower borrowing costs and customer relationships are expected to support growth and new lending opportunities.
- Growth target
- 18% for the current fiscal year
- Q1 growth
- 15%
- Japanese manufacturers in India
- 1,490
- Current network
- 3,225 branches and about 80,000 employees
- Planned expansion
- Add 100 branches and 2,000–3,000 employees during the fiscal year
- Vehicle-financing mix
- Used-vehicle and new-vehicle financing has shifted from roughly 90%-10% to 80%-20%
- Gold-loan goal
- Increase gold loans to 5% of the portfolio and add 500 branches to the gold-loan network