Paisalo Digital Limited has announced the signing of a co-lending loan agreement with the State Bank of India (SBI) for SME products. The agreement, formalized on June 26, 2025, marks an extension of the existing digital co-lending partnership between Paisalo and SBI, originally launched in 2021.
The company said this collaboration aims to expand affordable credit access to India’s growing base of small and medium businesses, especially in tier 2, tier 3 cities, and rural areas. Under this arrangement, both SBI and Paisalo will jointly fund SME loans, following the Reserve Bank of India’s co-lending framework.
Paisalo’s Deputy Managing Director, Santanu Agarwal, stated that the new arrangement underlines their shared vision to drive financial inclusion and boost entrepreneurship across the country. The SBI–Paisalo digital co-lending platform has already serviced over 94 lakh customers with 3,565 touchpoints since inception.
The company expects this SME-focused expansion to strengthen its reach and contribute meaningfully to priority sector lending in India.
