Shriram Finance examines a novel approach to borrowing in order to cut expenses.

Executive Vice Chairman Umesh Revankar told Moneycontrol that Shriram Finance is actively working on a new borrowing plan to further lower its cost of financing over the next six months. Revankar pointed out that older loans with comparatively higher interest rates are part of the company's current debt. It will take around eighteen months to replace these with less expensive money. Nonetheless, the business is already moving to reorganize its short-term financing strategy. "We are in the process of making some adjustments to our financing plan. Consequently, we anticipate that during the following six months, the cost of financing will decrease. We want to prioritize all lines of borrowing equally in the future," Revankar stated. Revankar responded to the fall in the company's gold loan portfolio by stating that the overall Assets Under Management (AUM) was affected by somewhat higher maturities in the first two months of the current fiscal quarter. The company's gold loan AUM decreased 15.82% year over year to Rs 5,154.05 crore in the April-June quarter of FY26 from Rs 6,122.51 crore in the same period last year, according to the investor presentation. Shriram Finance is working on a new borrowing strategy aimed at reducing its cost of financing within the next six months, according to Executive Vice Chairman Umesh Revankar. The company currently carries older loans with relatively higher interest rates, which it plans to gradually replace with cheaper funding sources over the next 18 months. To achieve this, the firm has already begun restructuring its short-term financing approach, focusing on optimizing costs and diversifying borrowing channels. Revankar highlighted that the company intends to give equal priority to all lines of borrowing in the future to maintain a balanced funding structure. By streamlining its financing mix, Shriram Finance expects to lower its overall cost of funds and improve profitability in the coming quarters. The strategic move comes at a time when the company is closely monitoring interest rate trends and exploring innovative funding solutions to stay competitive. Meanwhile, the lender has witnessed a decline in its gold loan portfolio, which has affected overall Assets Under Management (AUM). In the April-June quarter of FY26, gold loan AUM fell by 15.82% year-on-year to Rs 5,154.05 crore, compared to Rs 6,122.51 crore in the same quarter last year. Revankar attributed this dip to higher maturities in the first two months of the fiscal quarter, which resulted in lower outstanding balances.