In a significant push towards enhancing financial inclusion and sustainable economic expansion in India, German development finance institution DEG and global banking major Citi have jointly provided a USD 76 million (approx. ₹630 crore) co-financing package to Shriram Finance Ltd, one of India’s largest non-banking financial companies (NBFCs).
Key Highlights
- DEG and Citi jointly extend $76 million to Shriram Finance for inclusive growth.
- Funds to support MSMEs, EV financing, women borrowers and rural farmers.
Under the financing structure, DEG has provided a €40 million (around USD 46 million) loan, while Citi has extended a ₹260 crore loan to the NBFC. Citi also acted as the lead arranger and coordinator of the transaction, marking a deeper collaboration between the two financial institutions to support inclusive credit growth in underserved markets.
This facility — the second such co-financing initiative between DEG and Citi in India — builds on a prior collaboration that supported CreditAccess Grameen in 2024, underscoring both institutions’ expanded commitment to development finance and climate-positive investment in the region.
Shriram Finance will channel the DEG portion towards lending for micro, small and medium enterprises (MSMEs), electric vehicle (EV) financing, women borrowers, and customers in underserved rural geographies through its extensive branch network. Citi’s financing will be focused on smallholder farmers, a segment critical to India’s food security and rural economic stability yet often constrained by limited access to affordable formal credit.
The initiative is also aligned with several United Nations Sustainable Development Goals (SDGs), including SDG 5 (Gender Equality), SDG 7 (Affordable and Clean Energy), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities) — underscoring the broader developmental impact beyond pure credit expansion.
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“We are proud to partner with DEG and Citi on this high-impact facility, which strengthens our mission of driving financial inclusion across India,” said Umesh Revankar, Executive Vice Chairman at Shriram Finance Ltd. “This funding will enable us to support small businesses, women entrepreneurs, EV adoption, and small landholding farmers — segments that form the backbone of India’s growth story.”
From DEG’s perspective, Gudrun Busch, Global Head of Financial Institutions, noted, “Shriram Finance has a strong track record in rural and semi-rural India, and this facility will expand their capacity to serve the real economy and contribute to financial inclusion.”
Anuradha Choudhary, Managing Director and Head of Financial Institutions, Corporate Banking at Citi India, added, “This co-financing demonstrates how global financial institutions can partner effectively to unlock meaningful development impact by supporting Shriram Finance’s reach into priority underserved sectors.”
What It Means for India’s Credit Landscape
Shriram Finance’s core strengths lie in its deep presence in semi-urban and rural markets, diversified lending portfolio, and a focus on serving high-impact but underserved segments of India’s population. The NBFC has also been active in sustainable growth initiatives such as EV financing, digital lending solutions, and MSME credit products, which are expected to benefit further from this capital infusion.
With the additional funding secured, Shriram Finance is well-positioned to expand its asset base, broaden its impact footprint, and accelerate its lending reach at a time when financial inclusion and sustainable rural development are key national priorities.
