Shriram Finance is aiming for 18 per cent business growth this financial year following MUFG’s investment. Executive Vice Chairman Umesh Revankar expects the partnership to bring fresh capital and reduce borrowing costs. MUFG will connect its corporate clients with Shriram for retail and supply-chain lending.

The opportunity covers nearly 1,490 Japanese manufacturers in India, with Suzuki, Toyota, Honda and Yamaha among them. Shriram wants to serve their dealers, sub-dealers and component suppliers. It plans to introduce supply-chain, inventory and dealer finance products by October 1.

The lender is also broadening its vehicle and gold loan businesses. Used vehicle lending historically accounted for 90 per cent of its business, while new vehicles now represent 20 per cent of its vehicle portfolio. Shriram aims to double gold lending to reach 5 per cent of its total portfolio and extend the service to another 500 branches.

Expansion plans include hiring between 2,000 and 3,000 employees this year, alongside an existing workforce of 80,000. It also intends to open 100 branches before the financial year closes. Despite its upper-layer NBFC status, Revankar said the company does not want to become a bank, preferring the flexibility of its current model.

On the RBI’s draft revolving-credit guidelines, Revankar argued that loan renewals are part of everyday business for small shops. Industry representatives have discussed these customer needs with the regulator.