Under the agreement, the two companies will jointly originate, and fund gold loans secured against gold jewellery, with a 20:80 participation ratio between Orange Retail and Shriram Finance, respectively.
The programme has a total cap of Rs 100 crore. Customers will have the option of choosing between a bullet repayment structure for tenures of up to 12 months or an EMI-based repayment structure for tenures of up to 36 months.
The gold loan partnership forms part of Orange Retail broader focus on expanding its secured lending portfolio. The company currently offers MSME loans against property and gold loans, with its branch network providing access to customers across rural, semi-urban and Tier-3 markets.
“Our established presence across rural and Tier-3 markets gives us a strong understanding of the customers and communities, we serve. This partnership with Shriram Finance allows us to build on that presence and expand access to gold loans while combining our local distribution and servicing capabilities with their scale,” Kiran Vedula, Chief Business & Operations Officer, Orange Retail Finance, said in a statement.
“We have enjoyed a good working relationship with Shriram Finance, and this agreement builds on that foundation. It gives us the ability to scale our gold loan operations significantly, and we intend to deepen this relationship further in the years ahead." Ebenezer Daniel G, MD and CEO, Orange Retail Finance India, said.
“Shriram Finance’s scale combined with Orange Retail Finance’s on-ground presence in rural and Tier-3 Tamil Nadu, allows us to extend our gold loan offering to markets for building reach. This is the kind of co-lending partnership we look to build, where we can widen access to credit in underserved geographies,” Muruganandha Pandiyan V, Deputy Managing Director, Shriram Finance Ltd, said.
