Shriram Finance is making a significant push into sustainable lending, consolidating its eco-friendly initiatives under Shriram Green Finance. With a clear target of building a ₹5,000 crore portfolio, the company is betting big on India’s transition to a greener economy, leveraging its extensive customer network and strategic partnerships to drive adoption.
In a recent interview, Rashmi Verma spoke with Mr. Nandagopal R, President and National Business Head – Green Finance, Shriram Finance, and discussed the company’s ambitious roadmap. He elaborated on how Shriram Green Finance is targeting ₹5,000 crore in Assets Under Management (AUM) over the next 3-4 years, with a significant portion driven by electric vehicle (EV) financing.
The strategy focuses on making EVs accessible by offering longer loan tenures and concessional rates, especially for two and three-wheelers in semi-urban and rural areas. This is bolstered by deep partnerships with OEMs to create seamless financing and service packages. Beyond EVs, the portfolio is expanding to include solar energy projects, EV charging infrastructure, and energy-efficient machinery, creating a comprehensive ecosystem for India’s sustainable growth.
Shriram Green Finance has set a target of ₹5,000 crore in AUM over the next 3–4 years. Could you elaborate on how much of this growth will come from electric vehicle financing and your approach to building this portfolio?
Green financing is central to sustainable economic growth, enabling lower carbon emissions and faster adoption of clean energy. At Shriram Finance, we are driving this transition through investments in electric mobility, renewable energy, and resilient infrastructure, backed by innovative financing models and strong partnerships.
All initiatives are now consolidated under Shriram Green Finance, with a target AUM of ₹5,000 crore over the next 3–4 years. We actively track Scope 1, 2, and 3 emissions, including financed emissions, and have reduced emission intensity. In FY 2024-25, we disbursed 36,000+ loans under Green Finance and over 200,000 loans digitally. With the EV sector expected to grow at a 15–20% CAGR, we project at least 20% year-on-year growth in our green finance portfolio, ensuring scalable and impactful expansion.
A large part of this will come from electric vehicle financing, particularly in the two- and three-wheeler categories where affordability and efficiency are driving adoption. With EVs now making up about 2% of India’s car sales, we believe this share will rise sharply and we want to be at the forefront by offering longer tenures, concessional rates, and bundled services to first-time borrowers and last-mile operators.
We have forged partnerships with leading OEMs to drive faster EV adoption. Our green financing portfolio also covers EV charging infrastructure, renewable energy projects, and EV retro fitment. Aligned with national sustainability goals, we support flagship programs such as the Pradhan Mantri Surya Ghar Muft Bijli Yojana, enabling residential solar adoption, and the Surya Shakti Solar Finance Scheme, which helps MSMEs install solar systems — together accelerating India’s transition to clean energy.
You are initially concentrating on Karnataka, Kerala, NCR, and Maharashtra. What factors influenced the selection of these regions, and do you plan to expand to other states soon?
Shriram Finance has launched its green financing initiatives in Karnataka, Kerala, NCR, and Maharashtra — regions already advancing rapidly in renewable energy, clean mobility, and sustainable infrastructure. These markets provide a strong foundation for turning green ideas into action, supported by policy momentum and rising consumer adoption.
Karnataka and Kerala lead with progressive approaches to renewables, Maharashtra offers scale as an economic hub, and NCR’s urgency on curbing pollution drives demand for cleaner solutions. Building on this traction, Shriram Green Finance has already started its PAN-India expansion from April 2025 onwards to create meaningful impact and support India’s low-carbon transition.
How is Shriram Green Finance engaging with EV manufacturers to create seamless financing solutions, and what kind of long-term partnerships are you aiming for?
We are working closely with EV manufacturers to integrate finance, warranty, and service into one package, making ownership simpler and more predictable. Over time, these partnerships are built on scale and trust, not just transactions. We have already partnered with leading OEMs to accelerate EV adoption. These collaborations also extend to charging infrastructure, creating a more integrated and sustainable mobility ecosystem.
Beyond EVs, you mentioned plans to finance renewable energy products, battery charging stations, and energy-efficient machinery. Could you share your timeline and priorities for rolling out these offerings?
Our strategy is not limited to EV loans. Under Shriram Green Finance, we are also lending strategic funding support for solar rooftop installations. We are extending term loans of up to ₹5 crores to individuals and enterprises for the development of EV charging ecosystems, including battery swapping stations, public charging hubs, and dedicated captive charging facilities.
In addition, we are focusing on battery energy storage systems, in line with national renewable energy mandates and sustainability targets. Last but not least, we are facilitating the conversion of conventional vehicles to electric powertrains — a cost-efficient, eco-conscious alternative that enhances asset longevity, optimizes capital deployment, and supports compliance with zero-emission regulations.
How do you plan to leverage your existing semi-urban and rural customer base to drive adoption of EVs and other green solutions? Are there specific incentives or education initiatives planned?
Our strong presence in semi-urban and rural India gives us a unique platform to accelerate EV adoption, especially for electric two-wheelers and small commercial vehicles. We are making the transition easier with financing solutions tailored to local needs. At the same time, we’re rolling out community outreach and education programs, including customer awareness programs we conduct along with OEMs and dealers, to build awareness around long-term benefits, from fuel savings and lower maintenance to reduced ownership costs. The goal is to bridge both the affordability and information gap, ensuring the green transition is inclusive and far-reaching.
Shriram Green Finance has committed to not financing older, polluting assets and offering special rates for low-emission vehicles. How do these ESG initiatives fit into your long-term business strategy and risk management framework?
Responsible financing is central to our ESG strategy, ensuring growth that is sustainable and inclusive. By focusing on green technologies, supporting underserved segments, and embedding strong governance, we are building a resilient and equitable future. This approach strengthens long-term resilience by aligning us with regulatory priorities, reducing environmental risk, and driving investor confidence. For us, sustainability is not a side initiative but a pathway to enduring value creation.
Our commitment is validated by impact assessments. In our social audit report (April 2022–March 2024), 90% of customers reported business growth, while 80% felt more secure, enabling them to acquire new assets. This stability translated into family benefits, funding education, family celebrations, or household assets like gold and livestock. Importantly, women emerged as standout beneficiaries, with loan volumes between March 2023 and March 2024 rising sharply: MSME loans by 93%, personal loans by 38%, and gold loans by 42%.
Our existing customers moving to electric vehicles also benefit from special interest rates, reinforcing our commitment to supporting the environment. Such outcomes directly strengthen our business fundamentals. When customers grow, diversify income, and gain social standing, repayment discipline improves and portfolio risks reduce. By fostering financially stronger customers and communities, we are creating a stable base for sustainable growth.