SHFLIN: A vehicles-focused NBFC

Research evidence excerpt

SHFLIN: A vehicles-focused NBFC

FICC Research

Credit Research

3 August 2026

Shriram Finance Ltd

SHFLIN’s business focus on the self -employed subjects it to

broader economic shocks, particularly in light of current

geopolitics. But the MUFG investment is a positive, and Imtiaz Shefuddin +65 6308 4906

strengthens its capital base and improves access to funding. imtiaz.shefuddin@barclays.com

Barclays Bank, Singapore

Retail NBFC with vehicles franchise; MUFG strengthens capital, supports profile

Shriram Finance Limited (SHFLIN) is a large retail-focused NBFC with a track record in vehicle

finance, particularly in commercial vehicles, where pre-owned vehicles remain a core part of its

business segment. The company was founded in 1979 as Shriram Transport Finance Company

Limited and was renamed Shriram Finance Limited in 2022 following its merger with Shriram

City Union Finance Limited and Shriram Capital Limited. The merger created a broader multi-

product lending platform by combining its vehicle and equipment financing franchise with the

two-wheeler market segment and gold loan businesses, while also expanding its customer

reach through a larger branch network. SHFLIN now serves small vehicle operators, self-

employed borrowers, agricultural households and micro, small and medium enterprises

(MSMEs), and has a diversified portfolio across commercial vehicles, passenger vehicles,

construction equipment, farm equipment, MSME finance, two-wheelers, personal loans and

gold loans.

In December 2025, SHFLIN entered into a definitive agreement with Japan’s MUFG Bank for the

latter’s purchase of a 20% stake in SHFLIN for INR396.2bn (USD4.4bn); the transaction was

completed in April 2026. Following the completion, SHFLIN was upgraded to investment grade