Boosting Financial Inclusion: DEG and Citi's USD 76 Million Initiative

DEG and Citi are collaborating to provide a USD 76-million co-financing package to Shriram Finance Ltd to promote economic inclusion, rural development, and climate-friendly mobility in India. The initiative supports MSMEs, women borrowers, and smallholder farmers, contributing to the UN Sustainable Development Goals.

In a significant move to enhance financial inclusivity, German development finance institution DEG and Citi have announced a USD 76-million co-financing package for Shriram Finance Ltd. The initiative aims to improve rural development and promote climate-aligned mobility across India.

DEG's contribution includes a 40 million euro loan, around USD 46 million, while Citi extended a Rs 260 crore loan to the NBFC. This collaboration continues their previous efforts to support inclusive and climate-positive financing, as demonstrated in a similar transaction with CreditAccess Grameen in 2024.

The funds will support MSMEs, electric vehicle financing, women borrowers, and underserved rural customers. By enabling access to affordable formal credit, the initiative is poised to empower small businesses and farmers, advancing multiple UN Sustainable Development Goals.

(With inputs from agencies.)