Introduction :
Established in the year 1974, the Shriram Group, comprising 750 Branches and Service Centres, in
The group, having an annual turnover of Rs. 6,000 crore (USD 1.3 billion), has a significant presence in the Insurance Consultancy, Consumer Durable Finance and Stock Broking businesses. It also have diversified investments in areas such as Information Technology, Pharmaceuticals, Property Development, Project Engineering, Packaging and Auto Components.
It employs over 11,000 employees across the countries that are committed to providing excellent customer service. It also have over 75,000 agents nationwide who reach out to its customers in even the most remote areas.
The Shriram Group's business ventures are built on providing the most efficient and customer-focused services based on the simple principle of putting people first. This 'People First' business philosophy has earned them unstinted customer loyalty through many generations.
HISTORY AND MILESTONE :
31st AUGUST 2008
Shriram Group ties up with UTI Bank for Retail Truck Financing Scheme to offer low cost loans for purchase of new or used trucks to transport operators.
APRIL 2007 :
Shriram Group attracts largest Venture Capital Investment in the Indian non-banking financial sector, from Overseas
JULY 2005 :
UTI Bank picks up equity stake in two Shriram Group companies
17th MARCH 2003 :
Shriram Investment Limited received the Mother Teresa Award for Corporate Citizenship.
DECEMBER 2002
Shriram Group enters into strategic alliance with Citicorp Finance and Cummins Auto Services.
31st AUGUST 2002
Shriram Group ties up with UTI Bank for Retail Truck Financing Scheme to offer low cost loans for purchase of new or used trucks to transport operators.
7th MAY 2002
Ms. Akhila Srinivasan awarded as the "Outstanding Woman Professional" for the year 2002
4th FEBRUARY 2000
Shriram Recon Trucks incorporated as
15th DECEMBER 1999
Medicorp, the flagship company of Shriram group’s pharmacy division became the first Indian company to win the Indian Drug Manufacturers Association
27th MARCH 1986
Shriram City Union Finance Ltd. Incorporated for cars and two-wheelers.
12th MARCH 1988
Shriram Investments Ltd. incorporated.
13th JUNE 1979
Shriram Transport Finance Company Ltd. Incorporated.
VISION,
Helping create wealth, Empowering people through prosperity, Putting people first.
The Shriram Group set out with the objective of reaching out to the common man with a host of products and services that would be helpful to him in his path to prosperity. Over the decades, the Group has 
achieved significant success in executing this objective and has created a tremendous sense of loyalty amongst its customers.
Efficiency in operations, integrity and a strong focus on catering to the needs of the common man, by offering him high quality and cost-effective products & services, are the values driving the organization. These core values are deep-rooted within the organization and have been strongly adhered to over the decades.
The group prides itself on its perfect understanding of the customer. Each product or service is tailor-made to perfectly suit the needs of the customer. It is this guiding philosophy of putting people first that has brought the Group closer to the grassroots and has made it the preferred choice for all financing requirements amongst the customers.
NON-BANKING FINANCIAL COMPANY (NBFC) – A GENERAL SCENARIO
Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 and is engaged in the business of loans and advances, acquisition of shares/stock/bonds/debentures/securities issued by Government or local authority or other securities of marketable nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, sale/purchase/construction of immovable property. A non-banking institution which is a company and which has its principal business of receiving deposits under any scheme or arrangement or any other manner, or lending in any manner is also a non-banking financial company (Residuary non-banking company).
DIFFERENCE BETWEEN BANKS & NBFC:
NBFCs are doing functions akin to that of banks, however there are a few differences:
A NBFC cannot accept demand deposits;
It is not a part of the payment and settlement system and as such cannot issue
cheques to its customers; and
COMMERCIAL VEHICLE
It is the funding of products include, trucks, buses, tippers, light commercial vehicles, pick ups, 3 wheelers, etc.
Range of services: funding of new vehicles, refinance on used vehicles, balance transfer on high cost loans, top up on existing loans, Extend product, working capital loans & other banking products.
Who are eligible?
Any individual / Partnership firm / company with more than 2 years business experience. Ownership of a vehicle is not mandatory. Funding extended to First Time User, Transporters and Captive Consumers.
How much?
Loan amount can vary from a few thousands to crore depending upon the specific requirement.
Funding can be up to the extent of 100 % of the chassis, body funding can be extended on special requirement & on the past experience.
Generally undertaken is Hypothecation funding. They are also taking over an old high-interest loan and converting it into low interest loan.
Repayment:
In general repayment period is of 3 -4 years, however depending on the nature of the deal the tenure can vary from 6 - 60 months.
The repayment schedule & the amortization schedule is sent on disbursement of the loan.
Interest:
Interest is charged on a flat rate based on the scheme applicable for the particular product.
Farm Equipment Loans
Farm equipment loan has also a big chunk in the vehicle finance.
Eligibility:
Agricultural Users
Any individual aged above 21 years at the beginning of the tenure and below 65 years by the end of the tenure; involved in agriculture for the last 5 years.
Having minimum 2 acres of land with its value at least twice the loan amount.
Staying in the same place for at least 3 years.
Having an annual income equal to the yearly instalment
Mortgage of land of 2 to 3 times of the loan amount
Commercial Users
Any individual aged above 21 years at the beginning of the tenure and below
65 years by the end of the tenure; involved in business for the last 3 years.
Owns at least one tractor or commercial vehicle.
Owns either a house or an office or at least 2 acres of land.
Has a permanent phone connection either at office or at home.
Loan Amount:
The loan amount varies from customer to customer depending on the valuation of the land being mortgaged, income of the customer and tenure desired. A maximum of 100% of the cost of the tractor, 75% of the cost of the trailer and 50% of the cost of the implements is funded.
Documentation:
Agricultural use
Application form with photograph of the customer and all applicants and/or
guarantor.
Performa Invoice of the asset to be funded from an authorized dealer.
Land records of the borrower/s.
Land valuation and title search report of the land.
Residence proof of the borrower/s.
Identity proof of the borrower/s.
Signature verification of the borrower/s.
Loan agreement, duly signed by the applicants and guarantor.
SPDCs(Security Post Dated Cheques) for entire tenure.
Commercial Use
Application form with photograph of the customer and all applicants and/or
guarantor.
Proforma Invoice of the asset to be funded from an authorized dealer.
Proof of Income (any of the following):
- Billing statement for the past one year
- Latest Income tax Return
- Last 6 months bank statement
Residence proof of the borrower/s.
Identity proof of the borrower/s.
Signature verification of the borrower/s.
Loan agreement, duly signed by the applicants and guarantor.
SPDCs (Security Post Dated Cheques) for entire tenure.
Rates & Fees:
The rate of interest varies from customer to customer and depends on various factors like land holding, loan amount, viability of the proposition and the underlying collaterals provided.
Interest:
Interest is charged on a monthly/quarterly/half-yearly reducing balance basis as the case may be. Every instalment that is paid has a component of principal as well as interest. Interest is charged on the principal outstanding after every instalment payment.
TWO WHEELERS:
Two wheeler finance is comparably Simple, Friendly and Quick. Loan Schemes are available from Rs.7500/- onwards to Rs.150000/- in easy instalments over a period of 6 to 36 months.
Eligibility Criteria:
Salaried Individuals
Self Employed Individuals
Pensioners, Housewives & Students
Partnership Entities
Private Limited Companies
Public Limited Companies
Interest rates: Interest rate is charged on a monthly reducing balance .
Documents:
Identity Proofs
Residence Proof
Income Proof
Post Dated Cheques
Copy of Credit Card
CC billing statement
Bank passbook/Statement
No objection Certificate
AWARDS AND RECOGNITION
Recipient of the social responsiveness awards instituted by Business world-Compaq at national level under the auspices of FICCI,
Adjudged as the third prize winner for having rended commendable service in the areas of social welfare and rural development.
Ms. Akhila Srinivasan receiving the social responsiveness Award instituted by Business World – Company from the Hon’ble Vice – President of India Krishna Kant in the year 1999.
Recipient of outstanding woman professional for 2000 – 01 by FICCI – FICCI Ladies organisation (FLO). The award was given by Ms. Sheila Dixit Chief Minister Delhi.
Mother Teresa award for corporate citizenship instituted by Loyola
SOCIAL WELFARE INITATIVES
They have always believed in delivering financial value with a human face. As a company firmly grounded up a middle class ethos, we take our social responsibilities very seriously.
Their corporate Social Responsibility (CSR) initiative started with the Shriram Social Welfare Trust (SSWF) that was set up in the year 1993. SSWT is today active in the following areas.
Orphan and destitute care
Primary education for the rural poor
Micro – credit financing through self- help groups for the marginalized
Empowerment and upliftment of women in villages.
ORPHAN AND DESTITUTE CHILDREN:
To swiftly help the poor and the needy to be self reliant and live with dignity, not charity. The primary focus and beneficiaries of the Trust’s activities are.
Abandoned neglected and destitute children.
Juvenile delinquents in need of care and protection.
Children of poor and illiterate parents.
Disadvantaged and marginalized section of women, particularly rural women
MICRO CREDIT FINANCING THROUGH SELF-HELP GROUPS FOR THE MARGINALIZED WOMEN IN VILLAGES:
Launch of Shriram Rural Development Project (SRDP) to create and develop
Social and human capital among the poor.
Micro credit financing through self help groups in 156 villages in Tamil Nadu,
Andhra Pradesh and Karnataka.
PRIMARY EDUCATION FOR THE RURAL POOR:
The trust runs four schools in rural areas at Thiruneermalai, Pallikaranai, Moovarasampet in Tamil Nadu and inn Prakash Nagar, Guntur Dist. In Andhra Pradesh. Over 2000 children receive free education. Schools offer education up to class VII and student will progressively move up to higher secondary level.
FUTURE PLANS :
To start six primary schools for the rural poor in the villages of Andhra
Pradesh.
Government of Andhra Pradesh to hand over 3.5 acres of land to SSET in six
districts.
Immediate Plans: to start two schools in Cudapah and
June 2008.
LONG TERM BENEFITS OF THE PROGRAM:
Reduction in rural indebtedness
Bank/institutional credit for investment in income – generation activities.
Improved household food security round the year, better nutrition.
Improved household income.
Empowerment of Women.
THE FUTURE ACCORDING TO SHRIRAM
To enlarge the scope of micro credit financing activity through NBFC Shriram Investment Limited.
To lend credit at low interest rates to 3 lakh women below poverty line in the next 3 years.
NATIONAL AWARDS WON
Business World Compaq award fota Social Responsiveness instituted by FICCI from the Hon’ble Vice – President of India Mr. Krishna Kant on 1999.
Mother Teresa award for Corporate Citizenship instituted by Loyola Institute of Business Administration (LIBA), Chennai in 2002.
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