Orange Retail Finance India Private Ltd (ORFIL), an RBI-registered non-banking financial company (NBFC), has signed a co-lending agreement with Shriram Finance Ltd to offer gold loans to customers across Tamil Nadu. Under the agreement, the two companies will jointly originate, and fund gold loans secured against gold jewellery, with a 20:80 participation ratio between ORFIL and Shriram Finance, respectively. The programme has a total cap of ₹100 crore and forms part of ORFIL's broader focus on expanding its secured lending portfolio. In a recent interaction with businessline, Umesh Revankar, Executive Vice Chairman, Shriram Finance, said that the company is preparing to double its gold loan business to 5 per cent of its portfolio. Nearly two-thirds of its branches currently offer gold loans, and the company wants to add another 500 branches to that network.
The gold loans will be available under two repayment structures to cater to different borrower preferences. As reported by CNBC TV18, borrowers can opt for a bullet repayment structure with tenures of up to 12 months or an EMI-based structure with tenures of up to 36 months. This flexible approach allows customers to choose repayment options that suit their financial capacity and cash flow requirements. The partnership builds on ORFIL's established presence in Tamil Nadu's rural and tier 3 markets, with 58 branches across Tamil Nadu, Andhra Pradesh, Karnataka, Telangana and Kerala.
The partnership will cover Tamil Nadu, where ORFIL operates through its extensive branch network. According to the company, Orange Retail Finance has 58 branches across Tamil Nadu, Andhra Pradesh, Karnataka, Telangana and Kerala. The company is an RBI-registered NBFC headquartered in Chennai and is rated ICRA BBB- (Stable). This network presence provides the necessary ground infrastructure for the gold loan business under the partnership, with the company currently offering MSME loans against property and gold loans, with its branch network providing access to customers across rural, semi-urban and Tier-3 markets.
According to Muruganandha Pandiyan V, Deputy Managing Director of Shriram Finance, as reported by CNBC TV18, the partnership allows the companies to combine Shriram Finance's scale with Orange Retail Finance's on-ground presence in rural and Tier-3 Tamil Nadu markets. Ebenezer Daniel G, MD & CEO, ORFIL, stated that the agreement builds on their good working relationship and gives them the ability to scale their gold loan operations significantly. Kiran Vedula, Chief Business & Operations Officer of Orange Retail Finance, emphasized that the company's presence in rural and Tier-3 markets would support the gold loan business under the partnership, leveraging their established network and local market knowledge. Murugananda Pandian V, DMD, Shriram Finance Ltd, noted that this co-lending partnership allows them to widen access to credit in underserved geographies, extending their gold loan offering to markets for building reach.
