DEG, Citi co-finance $76 million to Shriram Finance for MSME, EV loans

DEG and Citi have extended a $76 million co-financing facility to Shriram Finance to expand lending to MSMEs, smallholder farmers, women borrowers, and electric vehicle buyers

DEG and Citi have jointly extended a $76 million (around Rs 630 crore) co-financing facility to Shriram Finance to support lending to underserved segments, including MSMEs, smallholder farmers, and electric vehicle (EV) buyers. Under the structure, DEG has provided a €40 million loan, while Citi has extended Rs 260 crore. Citi acted as the lead arranger and coordinator for the transaction. 

The funding is aimed at accelerating financial inclusion, rural development, and climate-aligned mobility initiatives through Shriram Finance, one of the country’s largest non-banking financial companies (NBFCs) with a strong presence in semi-urban and rural markets. 

The DEG loan will be deployed towards financing micro, small and medium enterprises (MSMEs), women borrowers, electric vehicles, and customers in underserved geographies. Citi’s portion will support lending to smallholder farmers, a segment often constrained by limited access to affordable credit. This marks the second collaboration between DEG and Citi in India, following a transaction in 2024 to support CreditAccess Grameen.