The agreement, capped at ₹100 crore, will allow the two NBFCs to jointly originate and fund loans secured against gold jewellery.
Under the deal, borrowers can choose between a bullet repayment structure of up to 12 months or an EMI‑based plan lasting up to 36 months, offering flexibility in a market that has seen a 12% rise in gold loan demand over the past year.
Shriram Finance will handle 80% of the lending, leveraging its scale and distribution network, while Orange Retail Finance will contribute 20%, capitalising on its 58‑branch presence in rural and Tier‑3 Tamil Nadu markets. “The partnership allows us to combine Shriram’s scale with Orange’s on‑ground reach in Tier‑3 markets,” Muruganandha Pandiyan V, Deputy Managing Director of Shriram Finance, said.
Kiran Vedula, Chief Business & Operations Officer at Orange Retail Finance, added that the company’s footprint in rural areas would support the gold loan business under the partnership. The arrangement fits into Orange’s broader secured‑lending strategy, which includes gold loans and MSME property‑secured loans.
Analysts note that the ₹100 crore pool could lift Orange’s loan book by around 5% YoY, while Shriram’s exposure to gold‑secured credit might diversify its risk profile. The deal also positions both firms to capture a share of Tamil Nadu’s gold loan market, projected to grow 15% annually.
The partnership is expected to be reflected in Q3 earnings, with both firms likely to disclose the impact on revenue and net profit margins. Market watchers will be keen to see whether the collaboration translates into a sustained uptick in loan origination volume.
Orange Retail Finance is an RBI‑registered NBFC, rated ICRA BBB‑, and Shriram Finance has a strong track record in the gold‑loan segment, which may validate the strategic rationale behind the co‑lending pact.
Investors will monitor how the new partnership influences the NBFCs’ credit risk metrics and whether the joint venture can generate a 10% margin improvement in the next fiscal year.