DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH – and Citi have jointly announced a co-financing package of USD 76 million for Shriram Finance Limited, aimed at strengthening financial inclusion, rural development and climate-aligned mobility across India. The financing combines a €40 million loan from DEG and a ₹260 crore loan from Citi. Citi also acted as the lead arranger and coordinator for the transaction.
The funding will help Shriram Finance expand credit access to key underserved segments of India’s economy. DEG’s financing will primarily support lending to Micro, Small and Medium Enterprises (MSMEs), electric vehicle (EV) financing, women borrowers and customers in underserved regions. Citi’s loan will focus on supporting smallholder farmers, a vital segment of India’s rural economy that often faces limited access to affordable capital.
Through this initiative, the partners aim to strengthen economic inclusion while supporting climate-aligned and sustainable development. The programme also contributes to several United Nations Sustainable Development Goals, including Gender Equality (SDG 5), Affordable and Clean Energy (SDG 7), Decent Work and Economic Growth (SDG 8) and Reduced Inequalities (SDG 10).
This marks the second collaboration between DEG and Citi in India after their joint financing initiative with CreditAccess Grameen in 2024, reflecting their continued focus on advancing inclusive and sustainable financing solutions.
Umesh Revankar, Executive Vice Chairman of Shriram Finance Limited, said the partnership would help expand the company’s support to critical sectors driving India’s economic growth.
“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 allows us to channel this capital to customers who need it most,” he said.
Officials from DEG and Citi also highlighted that the collaboration demonstrates how global financial institutions can work together to deliver meaningful development impact while promoting sustainable finance in emerging markets.
