New Delhi: Sriram Group founder R Thiagarajan has donated almost all of his wealth to his employees, except for his small house and a $5,000 car. Thiagarajan, 86, told Bloomberg in an interview that he donated the money “to do something good for people in trouble.”
Thiagarajan is a self-described “leftist” who said he wanted to “remove some of the evils from the lives of the people” by donating his wealth. He also said that he came into the finance industry to prove that giving loans to people without credit history and regular income is not as risky as it is believed to be.
“Giving loans to the poor is a form of socialism,” Thiagarajan said. “We have tried to provide loans to people at cheaper rates.”
Shriram Finance is one of the leading non-banking finance companies (NBFCs) in India. It offers a wide range of loans, including personal loans, business loans, and vehicle loans. The company also provides insurance.
In the interview, Thiagarajan said that Shriram Group is different from other NBFCs in that it does not look at people’s credit scores. This is because most of the company’s customers are not part of the formal financial system.
Shriram Finance has posted a profit of $1.67 billion in the first quarter of fiscal year 2024, with a growth of 25.13% year-on-year. The company’s net interest income (NII) also increased by 11.31% year-on-year to $4.4 billion in the June quarter.
Thiagarajan’s donation is a significant example of corporate social responsibility in India. It is also a reminder that there are still wealthy individuals who are willing to give back to society.