Shriram Transport Finance: A Journey of Success

Shriram Transport Finance

On Oct 17, 2012, CNBC TV18 Best Bank and Financial Institution Awards 2012 presented Shriram Transport Finance Company Limited, with an award that finally recognized their stellar business acumen and innovation. Awarded for being the ‘best NBFC’ in the ‘asset backed lending’ Shriram Transport Finance’s journey towards success, began with a spark of an idea that changed thousands of lives for better.

As a part of Shriram group, a huge conglomerate whose reputation in financial services is unparalleled, Shriram Transport Finance (STFC) was incorporated in the year, 1979 and registered under Reserve Bank. Unlike the hundred other companies that were offering loans to companies and corporate businesses, Shriram Transport Finance offered to finance a neglected group – small truck owners. Sadly small truck owners, were then an informal sector and the economists and policy makers of the government failed to realize the potential impact that this sector can have on economy.

What is remarkable about the leaders of this company is that they spotted the potential, in a segment, which no other bank or financial institution was willing to finance. They understood more about ‘aspiration marketing’ even before it became a chapter in business studies. At a time, when a truck driver could not get loans to own a truck, Shriram Transport Finance took a leap of faith and started financing them. A truck driver belonging to the low-income group hardly had any equity to get a loan or even to repay it. And that’s when Shriram Transport Finance came up with the idea of financing pre-owned trucks.

A momentous decision that fulfilled many dreams! Since then Shriram Transport Finance has been the backbone support of many young men who drove freight trucks and dreamed of owning their own vehicle. From being a mere driver, to an owner, Shriram Transport Finance has steered the ambitions of many towards success.

Today, Shriram Transport Finance is not only a leader in truck finance but they are also India’s largest asset based Non-Banking Finance Company. By backing a common man’s dream, Shriram Transport Finance became the most respected and reputed company in the financial market. Today the company has a network of 620 branches and 515 rural centres all over India. Tying up with over 500 private financiers, all over the country, Shriram was able to spread its wings to all parts of India.

Growing from strength-to-strength today, Shriram has 20% to 25% market share in pre-owned trucks and 7% to 8% share in new truck financing and the loyalty of over 850000 customers, who grew their business along with Shriram.

Shriram Transport Finance offers loans to purchase heavy-duty trucks, medium and intermediate and light duty trucks, pick-up and mini trucks, passenger vehicle, farm equipment and construction vehicles. The company also provides other services such as tyre finance, engine replacement finance, co-branded credit card and freight bill discounting. There are umpteen number of companies that offer loan but Shriram offers much more than that. They offer you a dream and gets you going!

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by Balaji R via Shriram Properties