German government development finance institution DEG and US-headquartered bank Citi have jointly provided a US$76 million co-financing package aimed at accelerating economic inclusion, rural development and climate-aligned mobility across India through Indian non-banking financial company ( NBFC ) Shriram Finance. 

Under the co-financing loan structure, DEG has provided a €40 million ( US$46.48 million ) loan, while Citi has extended a 26-billion-Indian-rupee ( US$28.22 million ) loan to Shriram.

This collaborative and innovative financing, for which Citi acted as a lead arranger and coordinator, is designed, the organizations say, to strengthen Shriram’s outreach to priority segments that remain underserved in India’s credit ecosystem.

The DEG loan will support lending towards micro, small and medium enterprises, electric vehicle ( EV ) financing, women borrowers and customers in underserved areas that will enable access to formal credit through Shriram’s strong networks across India.

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.

Together, the initiative will contribute to multiple UN Sustainable Development Goals ( SDGs ), including numbers 5 ( gender equality ), 7 ( affordable and clean energy ), 8 ( decent work and economic growth ) and 10 ( reduced inequalities ).

This marks the second collaborative financing initiative between Citi and DEG, following the successful transaction supporting CreditAccess Grameen in 2024, underscoring, they say, “the institutions shared commitment to advancing inclusive and climate-positive financing in India”.

“This high-impact facility strengthens our mission of driving financial inclusion across India,” states Umesh Revankar, Shriram’s executive vice-chairman. “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. Our deep presence in rural and semi-urban India positions us uniquely to channel this capital to customers who need it most.”

Gudrun Busch, DEG’s global head financial institutions, points out: “This investment aligns with DEG’s mission to foster sustainable private sector growth in emerging markets. Shriram 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, Citi India’s managing director, head of financial institutions, corporate banking, adds: “This co-financing demonstrates how global financial institutions can partner effectively to unlock meaningful development impact. By supporting Shriram’s reach into priority underserved sectors, we are enabling economic empowerment where it is needed most.”