German DEG, Citi to provide USD 76-million co-financing package to Shriram Finance

Shriram Finance

German development finance institution DEG and Citi on Thursday announced providing a USD 76-million co-financing package to Shriram Finance Ltd, aimed at accelerating economic inclusion, rural development, and climate-aligned mobility pan-India.

Under this, while DEG (Deutsche Investitions- und Entwicklungsgesellschaft mbH) has provided a 40 million euro loan (around USD 46 million) and Citi has extended a Rs 260 crore loan to the NBFC, a statement said.

This collaborative and innovative financing is designed to strengthen the company's outreach to priority segments that remain underserved in India's credit ecosystem, it said, adding Citi acted as a lead arranger and coordinator for this financing.

This is the second such collaboration between the two co-financing partners following the successful transaction supporting CreditAccess Grameen in 2024, underscoring the institutions' shared commitment to advancing inclusive and climate-positive financing in India, the statement said.

The DEG loan will support lending towards MSMEs, electric EV financing, women borrowers, and customers in underserved areas that will enable access to formal credit through Shriram's networks across India.

On the other hand, Citi's financing will support smallholder farmers, a segment critical to India's food security and rural economy, yet often constrained by limited access to affordable capital, it said.

Together, the initiative will contribute to multiple UN Sustainable Development Goals, the statement added.

"We have partnered with DEG and Citi on this high-impact facility, which strengthens our mission of driving financial inclusion across India. 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," said Umesh Revankar, Executive Vice Chairman at Shriram Finance Limited.

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, said Gudrun Busch, Global Head Financial Institutions at DEG.

"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, we are enabling economic empowerment where it is needed most," said Anuradha Choudhary, Managing Director, Head of Financial Institutions, Corporate Banking, Citi India.