DEG, Citi Announce Euro 40 Million And INR 260 Crore Co-Financing To Shriram Finance Limited

* This is being done to Boost Sustainable Economic Advancement In India

DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH – and Citi have jointly provided a USD 76 million co-financing package aimed at accelerating economic inclusion, rural development, and climate-aligned mobility across India through Shriram Finance Limited, one of India’s largest non-banking financial services (NBFCs). Under the co-financing loan structure, DEG has provided a Euro 40 million loan, while Citi has extended a INR 260 crore loan to Shriram Finance. This collaborative and innovative financing is designed to strengthen the company’s outreach to priority segments that remain underserved in India’s credit ecosystem. Citi acted as a Lead Arranger and Coordinator for this financing.

The DEG loan will support lending towards Micro, Small and Medium Enterprises (MSMEs), 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, including SDG 5 (Gender Equality), SDG 7 (Affordable and Clean Energy), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities).

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

Mr Umesh Revankar, Executive Vice Chairman at Shriram Finance Limited said that “We are proud to partner with DEG and Citi on this high-impact facility, which strengthens our mission of driving financial inclusion across India. 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”

“This investment aligns with DEG’s mission to foster sustainable private-sector growth in emerging markets,” added Gudrun Busch, Global Head Financial Institutions at DEG. “Shriram Finance 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”

“This co-financing demonstrates how global financial institutions can partner effectively to unlock meaningful development impact,” said Anuradha Choudhary, Managing Director, Head of Financial Institutions, Corporate Banking, Citi India. “By supporting Shriram Finance’s reach into priority underserved sectors, we are enabling economic empowerment where it is needed most. In 2021, Citi also announced its global goal to finance and facilitate US$1 trillion towards sustainable finance by 2030. This solution aligns with the bank’s commitment towards sustainability.”

About Citi

Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in more than 180 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.

Additional information may be found at www.citigroup.com | X: @Citi | LinkedIn: www.linkedin.com/company/citi | YouTube: www.youtube.com/citi | Facebook: www.facebook.com/citi

About DEG

For more than 60 years, DEG has been financing and advising private enterprises operating in developing and emerging-market countries. With a portfolio of around EUR 11.6 billion we’re one of the largest private-sector development financiers. As an impact and climate investor we accompany companies that are addressing transformation and aiming to seize their opportunities. Our customers not only receive financing and advisory solutions tailored to their needs: they can build on our market knowledge, our impact and climate expertise and our international network. In this way, DEG, a subsidiary of KfW, contributes to creating more skilled jobs and local income and to improving value creation on the ground in line with the SDGs. Learn more: www.deginvest.de

About Shriram Finance Limited

Shriram Finance Limited (SFL) is one of India’s largest and most trusted non-banking financial companies, with a deep footprint across semi-urban and rural India. Known for its strong customer-centric approach, SFL serves millions of borrowers through products such as MSME loans, commercial vehicle financing, two-wheeler loans, gold loans, and personal credit solutions. SFL has a long-standing commitment to empowering first-time borrowers, small businesses, and low-income households—segments typically underserved by the formal financial system.