Shriram Transport Finance has opened a new avenue for growth by financing smaller business needs of its old and loyal customers.
It has entered into SME loans segment six months ago.
The non banking finance company expects about 10 per cent of its existing customer base of two million to boost its SME loans in the next five years.
“We want to service our existing customers (who have reached a particular level in their business and want to upgrade or do something new) come to us rather than going anywhere else. They may want to add a partner or have a sibling joining them or children wanting to do something new,” said Umesh Revankar, Managing Director and Chief Executive Officer of the company, said.
The SME loans, secured against property, will be extended to existing customers who have been with the company for five years. The average ticket size is around ₹10 lakh and lending rate is in the range of 17-18 per cent.
Image Courtesy : thehindubusinessline