Shriram Finance is aiming for a significant reduction in its cost of capital over the next two to three years, driven by balance-sheet strengthening and a potential credit rating upgrade. Speaking to Business Today, Vice Chairman Umesh Revankar said improved fundamentals will allow lenders to view the company more positively, leading to incremental repricing of liabilities. Revankar expects a 40 basis point benefit initially, expanding to nearly 100 basis points over 24 months as access to diversified funding sources improves. A higher credit rating would enable Shriram Finance to tap lenders that typically work only with top-rated borrowers. Currently, the company’s liability cost stands at around 8.8%, which it aims to bring down meaningfully through better ratings and broader funding access.