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Shriram Car Finance

Shriram Finance operates as a subsidiary of Shriram Group. Shriram city union finance is a well-known Non-banking Financial Companies (NBFC) located in South India. The company is headquartered in Chennai and specializes in commercial vehicle lending and consumer finance along with insurance and other financial services.

Shriram finance is the retail arm which provides various financing options. The company provides financing options to purchase both new and used cars. It caters to all major car brands manufactured, marketed and distributed in India. Shriram finance has been in the business for many years and is a name to reckon in the NBFC space. It has built its business with ethics and integrity among other core principles. It is a trusted brand and a veteran in the NBFC space.

Shriram Car Finance has a huge market share in financing of the used car segment. They have significant foothold in the rural / semi-urban parts of India. The borrowings in the used vehicles category also includes tractors and transport utility vehicles. The applicants with Shriram finance from semi-urban and rural areas are pre-dominantly farmers and self-employed individuals. Shriram finance has made efforts to design its loan application and processing such that it is conducive to the majority of its borrowers.

Key features and benefits of availing Shriram Car Finance

Shriram finance has been operating in South India for a very long period. The key value proposition of Shriram Car Finance is that it includes funding of entire cycle of the applicant. The finance company aims to provide vehicle replacement facility, insurance premium facility and discounting of freight bills.

Shriram Car Finance provides loans for all major automobile brands operational in India. Cars, vans, transport utility vehicles, tractors and trucks are the major categories of vehicles for which loans are extended. Both new and used vehicles are included for extending loan. The interest rates charged for each type of vehicle may vary, the interest rates for new vehicles tend to be slightly lower than that of used vehicles. The interest rates in the case of used vehicles would depend upon age and model of the vehicle.

  • High quantum of loan – The loan to value is 85% of the price of the vehicle. Typically, for the rural and semi-urban segment this is considered a high loan-to-value ratio.
  • Long tenure – The loan tenure for car loans is at 12 months (1year) to 36 months (3 years). The 3-year horizon provides sufficient time for the applicants to conveniently pay the EMI.Existing debt of client – During the loan application and documentation process, the applicant has to declare the existing debt. This will be indicative of the ability of the applicant to take up the burden of EMI (equated monthly instalments).
  • Existing debt of client – During the loan application and documentation process, the applicant has to declare the existing debt. This will be indicative of the ability of the applicant to take up the burden of EMI (equated monthly instalments).
  • Credit score – The credit score of the applicant plays an important role in determining the interest rate on the loan. Higher the credit score, better are the chances of approval. Also, the interest rates will be nominal in case of applicant with high credibility.

At the outset, the applicant has to check for eligibility of car loan. The eligibility for car loan is designed based on the strata of audience it caters to.

Eligibility for availing Shriram Car Finance

Prior to availing a car / auto loan from Shriram finance, it is important to ascertain eligibility for availing the loan from Shriram finance. They have stipulated a set of conditions which is a pre-requisite for ensuring that the loan application does not get rejected. It is best for the applicant to avoid loan rejections since multiple loan rejections could reflect poorly on one’s credit score. Credit score is a pertinent parameter for ensuring high credibility. A poor credit score can impact all your future applications for any type of loan.

Some of the key criteria for applying for loan with Shriram Car Finance are listed below –

  • Age range – The applicant has to be above the age of 21 years and within the age of 59 years
  • Type of employment – The applicant can either be a salaried individual or self-employed. Farmers / agriculturist would qualify under the self-employed category. There has to be an established source of income and the same has to span over a few years
  • Tenure of current employment – Salaried should possess atleast 1 year of work experience; Self-employed should have been in the business for atleast 2 years
  • Proof of residence – Shriram finance further insists that the individual should have been in the same residence for a minimum of 1 year
  • Stability of income – Shriram finance decides on key aspects such as quantum of loan, interest rates, loan approval based on the stability of income of the applicant. If the applicant has a long-term well-established income which reflects in the bank statement, then the likelihood of higher loan being sanctioned at a nominal interest rate is higher.

After establishing the eligibility for car loan with Shriram finance, the applicant has to duly fill out the application form and submit it along with required documents.

Documents Required for Shriram Car Finance

The loan application for applying for car loan with Shriram finance can be downloaded from the website or it can be procured from the nearest Shriram finance outlet. The document required from salaried applicant varies from that of a self-employed applicant. This is primarily due to the difference in the type of income that the two derive.

  • Identity proof – Aadhaar Card, PAN Card, Voter’s ID Card, Passport or Driving License (or any other document issued by Government of India)
  • Address proof – Driving License, Passport, Ration Card or gas bill with gas connection book, electricity bill or any other utility bill
  • Income proof for salaried applicants – Last 6 months’ bank statement and salary slips, IT returns, and Form 16
  • Income proof for Self-employed applicants – Last 6 months’ bank statement, Income tax returns for past 2 years with computation (Balance sheet and Profit & Loss account)

The above-mentioned documents have to be submitted along with filled-in application form. There is a requirement to submit passport size photos, post-dated cheques, electronic clearing mandates and other legal documentation (signed) as required by Shriram Finance. Based on approval of loan, for new vehicles the applicant has to submit duly endorsed vehicle registration certificate and for used vehicles the same has to be submitted before the sanction of the loan.

What are key features and benefits of Shriram Finance car loan?

Shriram car finance offers customized solution depending on the credit profile and requirement of the individual. There are multiple benefits by availing Shriram finance car loan, some of the key benefits are as mentioned below –

Loan flexibility – Shriram finance offers standard loan facility or credit with loan buyback option

Add-on financial products – There are multiple add-on products available with Shriram products namely - Credit Shield, Extended Warranty, Motor Insurance and Accessories. This feature is not only unique it is also indicative of higher loan – to – value. Accessories, gadgets and insurance of Shriram cars can be expensive, covering these aspects will be beneficial to potential

Effective claims management – Shriram finance and dealer of Shriram cars provide optimal service; the insurance policy is issued immediately on loan disbursement and the claims are managed efficiently and professionally

Exclusivity of dealing with Shriram cars – Shriram finance deals in providing car finance exclusively to Shriram cars marketed in India. Potential customers of Shriram cars are likely to benefit from the exclusive offers extended by Shriram finance.

Long tenure for easy repayment – Shriram finance allows maximum tenure of 5 years for repayment of finance extended. This provides sufficient time for borrowers to payback EMI conveniently

How to calculate EMI for car loan availed from Shriram Car Finance?

EMI can be calculated using the EMI calculator available on their website. The EMI calculator captures a few basic personal details and the individual has to input loan value, age, tenure based on these factors the EMI would be calculated. The EMI calculated will provide a fair idea to the borrower on the amount that needs to be set aside for car loan over the tenure.

This may not be the exact EMI and would be indicative. The financier will base the quantum of loan, interest rates on the credit score and tenure of the loan.

Shriram Finance Repayment Options

Shriram finance repayment options include post-dated cheques, electronic clearing mandates and net banking. The highly digitized economy calls for online transactions. While the rural and semi-rural audience are yet to warm up to other means of payment such as Paytm etc., the urban audience use the hassle-free online method for making their EMI payments on a regular basis. This is not only hassle-free and time saving, it also enables the individuals keep track of their payments without having to download / request for updated loan statement from the financier /dealer.

Fees and charges applicable on car loan availed from Shriram Car Finance

The interest charge is one of the charges applicable over the tenure of the loan. There are other ancillary charges applicable in processing the loan and tending to the loan over the tenure. Below is a list of other charges that are typically applied on these loans –

Type of chargesAmount
Cheque bounce chargeRs. 500 per cheque bounce
Cheque collection chargeRs. 250 for every visit to collect cheque
Loan swap chargeRs. 500 per instant of swap
Pre-payment charge4% on outstanding loan amount
Postal chargeRs. 50 per dispatch or actual charges whichever is higher


  • Shriram finance provides loan for a variety of automobiles including cars, trucks, vans, tractors etc.,
  • Shriram finance extends finance for all major automobile manufacturers / distributors in India
  • The loan to value is 85% which is high considering that their primary audience is rural / semi-urban individuals
  • There are some basic eligibility criteria for availing loan from Shriram finance
  • Shriram finance is a big player in the south region and especially in the used car financing segment

Frequently asked questions

1. What does Shriram finance consider before sanctioning loan?

The stability of income and existing debt commitments are studied in detail before loan approval and sanction

2. What type of applicant can apply for car loan from Shriram finance?

The applicant can either be a salaried individual or self-employed individual

3. How can I procure the loan application form?

The loan application form can be availed from the nearest Shriram finance outlet or it can be downloaded online from their website.

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