Shriram Transport Finance Company has raised long-term fund of $250 million from the US International Development Finance Corporation (DFC). The external commercial borrowing (ECB) is a fixed-rate 10-year loan under the company’s social finance framework. The funds raised from DFC will enable the company to provide credit for the purchase of new and used vehicles throughout India.
The proceeds will be used for financing vehicles for commercial purposes, alternate fuel financing through CNG, LPG and electric vehicles and employment generation through MSME loans, specifically for women entrepreneurs, among others.
Shriram Transport Finance Company is a flagship company of the Chennai-based Shriram group and is classified as deposit taking Asset Financing NBFC.