Money & Banking

Shriram Transport Fin to finance used-car buys too

Beena Parmar Satyanarayan Iyer Mumbai | Updated on March 12, 2018

To beat the slowdown in the heavy vehicles segment, Shriram Transport Finance Company is looking to provide loans to a new segment — buying used cars.

The company, which mainly gives loans for purchasing of heavy/commercial vehicles, plans to finance purchase of about 2,000 second-hand private cars every month, according to Umesh Revankar, Managing Director and CEO of the non-banking financing company.

“We are now getting into the used-car segment…Those who have two-wheelers are going for cars now. There is good demand, and there is some vacuum in this segment,” Revankar told Business Line.

We want to fill the vacuum without compromising on yields. We want to target those buying vehicles for the first time, he said.

The NBFC is not looking at any tie-up and will market the business through Shriram Automall. The automall is a transaction platform for the business of second-hand cars, bikes, autos, commercial vehicles and agricultural/construction equipment.

According to Revankar, the total cars sold in a year is about 20-25 lakh, of which, 10-15 per cent is passenger vehicles and the rest (about 17-19 lakh), private cars.

“Though the overall volumes will be low for this year, the company will scale this up next fiscal,” Revankar said.

Published on December 06, 2013

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