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DEG & Citi Fuel Financial Inclusion with Shriram Loan
4 Mar
Summary
- DEG and Citi provided $76 million to Shriram Finance.
- Funds will accelerate economic inclusion and rural development.
- Financing targets MSMEs, EV adoption, and smallholder farmers.
A USD 76 million co-financing package has been announced by DEG, Germany's development finance institution, and Citi for Shriram Finance Ltd. This collaboration aims to significantly boost economic inclusion, rural development, and climate-aligned mobility throughout India.
DEG has contributed a 40 million euro loan, approximately USD 46 million, while Citi extended a Rs 260 crore loan. This financing is strategically designed to enhance Shriram Finance's reach to priority, underserved segments within India's credit ecosystem. Citi served as the lead arranger and coordinator for this substantial financial initiative.
The DEG loan is earmarked to support lending towards Micro, Small, and Medium Enterprises (MSMEs), electric vehicle financing, women borrowers, and customers in underserved regions. Simultaneously, Citi's financing will provide critical capital to smallholder farmers, a vital sector for India's food security and rural economy.
This joint effort underscores DEG and Citi's commitment to inclusive and climate-positive financing in India, aligning with multiple UN Sustainable Development Goals. The facility will empower small businesses, women entrepreneurs, EV adoption, and support small landholding farmers, reinforcing the backbone of India's growth narrative.
