Credit Risk Management

This study critically examines the credit risk management practices of Shriram Finance, a leading Indian non-banking financial institution (NBFI), focusing on its strategies for credit appraisal, risk mitigation, and loan recovery. Through secondary data analysis, the research evaluates Shriram Finance’s effectiveness in maintaining portfolio quality, reducing non-performing assets (NPAs), and aligning with regulatory standards. Key findings reveal a structured, field-based credit assessment system, improved NPA ratios, and strong post-disbursement monitoring, contributing to high collection efficiency. However, challenges persist in digital adoption and standardization across geographies. The study offers strategic recommendations, emphasizing technology integration, staff training, and borrower education. These insights contribute to financial inclusion discourse while providing practical guidance for NBFIs operating in high-risk lending environments.