SBI and Paisalo signed Co-Lending Loan Agreement for SME Products

New Delhi, June 27, 2025: Paisalo Digital Limited, a leading systemically important non-deposit taking NBFC, has entered into a Co-Lending Loan Agreement for SME products with the State Bank of India (SBI), the country’s largest public sector bank. This agreement, formalised on June 26, 2025, marks a significant extension of the existing SBI–Paisalo partnership and further strengthens their collaborative platform for inclusive credit delivery.

This new co-lending agreement builds upon the already operational co-lending (formerly coorigination) digital platform established between Paisalo and SBI in 2021.

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It is fully aligned with the Reserve Bank of India’s guidelines on co-lending of loans issued on November 5, 2020, which aim to deepen credit flow to priority sectors, including micro, small and medium enterprises (MSMEs), by leveraging the combined reach and strengths of banks and NBFCs. Under this arrangement, SBI and Paisalo will jointly fund SME loans, enabling wider access to formal credit for India’s growing base of small businesses, especially in tier 2, tier 3 cities and rural markets.

The SBI–Paisalo co-lending platform is a digital platform that offers end-to-end services for loan origination, processing, disbursement, servicing, and recovery, ensuring efficiency and transparency throughout the loan lifecycle.

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Mr. Santanu Agarwal, Deputy Managing Director of Paisalo Digital Limited, commented on the development, "This new agreement with SBI underlines our shared vision to expand affordable and timely credit access to the backbone of the Indian economy. By leveraging our integrated physical and digital approach and SBI’s robust banking infrastructure, we are positioned to scale our impact, drive entrepreneurship, and contribute meaningfully to employment generation across the country.”

The SBI–Paisalo co-lending platform has a proven track record, having successfully serviced over 94 lakh+ customers, with 3,565 touchpoints since its inception. This expanded scope to include SME products is expected to catalyse further growth in priority sector lending while addressing the unmet needs of India’s underserved business segments.

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