Under this arrangement, SBI and Paisalo will jointly fund loans for small and medium enterprises (SMEs). This initiative will improve access to formal credit, especially in tier-2 and tier-3 cities and rural areas. The SBI-Paisalo co-lending platform offers a fully digital process for loan origination, disbursement, servicing, and recovery, ensuring efficiency and transparency throughout.

This new SME-focused collaboration builds on their existing co-lending platform, which started in 2021. It follows the Reserve Bank of India’s co-lending framework released on November 5, 2020. This framework aims to increase credit flow to priority sectors like MSMEs by utilizing the strengths of both banks and non-banking financial companies.

Santanu Agarwal, deputy managing director of Paisalo Digital, said, “This new arrangement with SBI underlines our shared vision to expand affordable and timely credit access to the backbone of the Indian economy. By leveraging our integrated physical and digital approach and SBI’s robust banking infrastructure, we are positioned to scale our impact, drive entrepreneurship, and contribute meaningfully to employment generation across the country.”

Since its inception, the SBI-Paisalo co-lending platform has served over 94 lakh customers through 3,565 touchpoints. With the addition of SME products, the platform is expected to speed up lending to priority sectors and meet the financing needs of underserved business segments.

Paisalo Digital is a non-deposit-taking, non-banking financial company. The registered office of the company is in Delhi, and the head office is in Agra.

State Bank of India (SBI) is an Indian multinational, public-sector banking, and financial services statutory body. As of 31 March 2025, the Government of India held a 57.43% stake in the bank.

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