DEG and Citi Co-Finance $76 Million for Shriram Finance to Boost MSME, Farm, and EV Lending

Deutsche Investitions- und Entwicklungsgesellschaft (DEG) and Citi have jointly provided a $76 million (approximately ₹630 crore) co-financing package to Shriram Finance Limited. This funding aims to expand lending to underserved segments in India, including Micro, Small, and Medium Enterprises (MSMEs), smallholder farmers, and electric vehicle (EV) buyers.

Under the agreement, DEG has contributed a €40 million loan, while Citi has provided a ₹260 crore loan. Citi served as the Lead Arranger and Coordinator for the transaction, as announced on March 4, 2026 .

Supporting Economic Inclusion and Rural Development

The financing is designed to strengthen Shriram Finance’s reach to priority segments within India’s credit ecosystem. Shriram Finance is one of the largest non-banking financial companies (NBFCs) in India, with a significant presence in semi-urban and rural markets.

The DEG loan will focus on providing financial support to MSMEs, women borrowers, EV financing, and customers in underserved regions, facilitating access to formal credit through Shriram’s extensive network. Citi’s contribution will specifically support lending to smallholder farmers, a crucial segment for India’s food security and rural economy, often facing challenges in accessing affordable capital .

A Second Collaborative Effort

This marks the second collaborative financing effort between DEG and Citi in India. Previously, in 2024, they jointly supported CreditAccess Grameen, demonstrating their shared commitment to inclusive and climate-positive financing in the region .

The initiative contributes to multiple UN Sustainable Development Goals, including SDG 5 (Gender Equality), SDG 7 (Affordable and Clean Energy), SDG 8 (Decent Perform and Economic Growth), and SDG 10 (Reduced Inequalities) .