Paisalo Digital has entered a Memorandum of Understanding with LoanKhata for a proposed co-lending partnership. The partnership marks another step in Paisalo's acceleration phase, as the company scales its loan book, expands distribution and strengthens its technology-led lending model.

Under this MoU, Paisalo and LoanKhata intend to establish a co-lending facility aggregating up to Rs 1,000 crore. The proposed participation structure envisages Paisalo funding 80% and LoanKhata funding 20% of each eligible loan. The facility will focus on Micro-enterprises and MSMEs.