Orange Retail Finance & Shriram Finance tie up for a ₹100 crore co-lending pact to offer gold loans across Tamil Nadu.

The agreement came to light on 5 October. Orange Retail Finance India, a Chennai-based non-banking finance company, will team up with the larger Shriram Finance to lend money against gold jewellery.

Both lenders will find borrowers together and put up the money together. Orange will fund 20% of every loan, while Shriram Finance will cover the remaining 80%.

Customers pledge their gold jewellery to get the loan. They then pick how to repay it.

One route is a single lump-sum payment at the end of a term of up to 12 months. The other is monthly instalments spread over as long as 36 months.

Orange operates 58 branches across Tamil Nadu, Andhra Pradesh, Karnataka, Telangana and Kerala.

The company said its roots in rural areas and Tier-3 towns help it understand local customers, and it will pair that local reach with Shriram’s size.

Kiran Vedula, Chief Business and Operations Officer at Orange, said the tie-up lets the company build on its local presence and widen access to gold loans.

Ebenezer Daniel G, Orange’s MD and CEO, said the two firms have worked well together before and this deal builds on that.

He said it allows Orange to scale up its gold loan operations significantly, and he plans to deepen the relationship in the coming years.

Muruganandha Pandiyan V, Deputy Managing Director at Shriram Finance, called it the kind of partnership his company wants to build, one that widens access to credit in underserved areas.

Gold loans sit within Orange’s secured lending business, which also includes loans against property for small businesses.

The company is registered with the RBI and holds an ICRA rating of BBB- with a stable outlook.

Orange said its secured lending portfolio already includes lending partners across gold loans and loans against property. This agreement adds to those ties.

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