With focus on micro, small and medium enterprises loans, Shriram Finance plans to double its loan book in three years in Uttar Pradesh, the company said in an exchange filing today.
In three years, the non-banking financing organisation wants to increase the amount of money it manages in Uttar Pradesh—to over 200 billion rupees. The company had 107.7 billion rupees in assets under management in the state as of September-end.
"The growth strategy will be focused on growing the MSME (micro, small and medium enterprises) loan book since UP (Uttar Pradesh) has the largest number of MSMEs registered under Udyam and the opportunity to provide finance to MSMEs in the state is significant," according to the exchange filing.
The central government has organised a full system of facilitation called as Udyam for those who wish to certify that their small or medium business or enterprises is legal and operational.
The company has also witnessed success in financing 80,000 two-wheelers in the quarter ended December in Uttar Pradesh, with the majority of its customers being self-employed.
The north Indian state had the largest market share for two-wheeler sales compared to other states in 2022. "We have a leadership position in two-wheelers and commercial vehicle financing and will now focus on growing the MSME lending business which will drive overall growth in UP," Shriram Finance Joint Managing Director G.M. Jilani said.
Demand for financing of two-wheelers, commercial vehicles, and micro, small, and medium enterprises has increased as a result of the economic turnaround, resuscitation of rural markets, and uptick in micro and small business activity.
The company also intends to introduce gold loans in Uttar Pradesh, with a growing emphasis on the self-employed population, particularly those who lack official documentation of their income yet need money to grow their tiny enterprises.
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