Paisalo Digital Expands Partnership With SBI Via Co-Lending Arrangement For SME Loans

A leading non-deposit taking NBFC, Paisalo Digital Limited, has announced the commencement of a co-lending loan arrangement with the State Bank of India (SBI) for SME products. This marks a notable expansion to their existing partnership. The collaboration is set to start on June 26, 2025, which is an extension to the successful co-lending (formerly co-origination) digital platform partnership initiated in 2021.

This enhanced alliance continues to support RBI's co-lending guidelines, which aim at alleviating credit constraints for underserved segments such as MSMEs. Under this new framework, SBI and Paisalo will participate in financing the SME loans, synergising SBI's extensive reach as the largest public sector bank in India with Paisalo's foothold in neglected market areas.

The program intends to broaden the supply of formal credit to small businesses located in tier 2 and tier 3 cities and rural regions where access to credit remains challenging. Using fully digital co-lending platforms accelerates efficiency and empowers borrowers through a streamlined experience that enables transparent loan origination, processing, disbursement, servicing, and recovery.

With a solid history of serving over 9.4 million customers through a network of 3,565 touchpoints throughout India, Paisalo is well-equipped to penetrate the SME lending market. This growth is anticipated to strengthen priority sector lending while fulfilling the neglected financial requirements of India's strategically important but underserved business segments, thus fostering grassroots-level economic development.

The company's robust fiscal data reinforces its growth story. In Q4 FY25, Paisalo's net sales hit Rs 182.08 crore and net profit for the quarter reached Rs 46.29 crore, up 26.4% from last year's figure for the same quarter. For FY25, net sales increased by 8% reaching Rs 711.11 crore, while net profit rose by 12%, hitting Rs 200.12 crore for the full year.

There is considerable institutional interest in the stock as well. Foreign Institutional Investors have increased their stake to 10.38% with purchases exceeding 88.5 lakh shares; SBI Life Insurance Co. Ltd and LIC own stakes of 9.36% and 1.17% respectively.

Through partnerships and a strong digital framework, Paisalo Digital Limited continues to expand its industry leadership in co-lending and financial inclusion in India. It seeks to service the credit requirements of innumerable underserved borrowers spread all over the country.