Shantaram was born in Kolhapur to a Marathi Jain family and he married thrice. His first marriage was to Vimla, Shantaram then married actress Jayashree (née Kamulkar). His third wife, actress Sandhya (née Vijaya Deshmukh), was his co-star in Do Aankhen Barah Haath as well as the heroine of his films such as Jhanak Jhanak Payal Baaje, Navrang, Jal Bin Machhli Nritya Bin Bijli, and Sehra. Daughter Madhura (from his first marriage with Vimla) is married to Pandit Jasraj and is the mother of music director Shaarang Dev Pandit and TV presenter Durga Jasraj.
Actress Rajshree is his daughter from the second marriage. He introduced Rajshree and Jeetendra in the 1964 film Geet Gaya Patharon Ne.