Paisalo and SBI Join Forces (Again) to Fuel India’s Micro Loan Boom

Paisalo Digital Ltd has signed a fresh co-lending loan agreement with the State Bank of India (SBI), reinforcing their long-standing partnership aimed at boosting financial inclusion. The agreement focuses on providing small-ticket income generation loans—ranging from ₹10,000 to ₹2 lakh—to underserved borrowers, especially in rural and semi-urban areas.

 

This isn’t their first collaboration. Paisalo was the first NBFC to sign a co-origination deal with SBI back in 2019. Since then, the partnership has helped disburse thousands of loans under a fully digital model, with SBI funding 80% and Paisalo contributing the remaining 20%. The new agreement builds on that foundation, with both players aiming to scale up lending to micro-entrepreneurs, women-led businesses, and the agri sector.

 

Paisalo’s Deputy CEO, Shantanu Agarwal, called the move a “natural next step” in their mission to reach India’s underbanked population. The company is leveraging its tech-driven platform and pin-code level credit mapping to identify low-risk borrowers and speed up disbursals.

 

For SBI, the deal helps meet its priority sector lending targets while tapping into Paisalo’s last-mile reach. For Paisalo, it opens up a steady flow of capital and strengthens its position in the ₹8 lakh crore small-loan market.

 

With this renewed push, both institutions are betting big on co-lending as a scalable model to bridge India’s credit gap—one small loan at a time.

 

Sources: The Hindu BusinessLine, Economic Times, Times Now