On June 26, 2025, Paisalo Digital took a major step forward in India’s lending landscape. It entered a new co-lending loan agreement with the State Bank of India (SBI)—India’s largest public sector bank. This fresh move is aimed at supporting SMEs (Small and Medium Enterprises) with better, faster, and more transparent credit access.
This is not a sudden decision. In fact, the partnership between Paisalo Digital and SBI began back in 2021. That’s when they launched a co-lending platform, once called co-origination. Now, it’s getting a powerful upgrade.
Why This Matters for India
The new plan sticks closely to RBI’s co-lending guidelines, introduced on November 5, 2020. These rules were made to improve credit flow to sectors that often get left out—like small businesses in tier 2 and tier 3 cities, and even rural India.
The idea is simple but powerful:
Two financial giants—SBI and Paisalo Digital—will share the funding of SME loans. That means more money, more reach, and more flexibility for borrowers.
And because the entire process is digital, it’s also faster and easier. The platform handles everything online—from loan applications to disbursements to repayments.
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A Win for Small Businesses
India’s SME sector is huge. It powers jobs, exports, and innovation. But many of these businesses still struggle to get formal loans. That’s where the SBIPaisalo platform steps in.
By combining SBI’s massive reach with Paisalo Digital’s digital-first approach, the platform gives small businesses a better shot at success.
The loans will be processed end-to-end through the digital platform. This ensures full transparency and efficiency at every step. For small business owners, it’s a game-changer.
What’s Next?
With this move, Paisalo Digital is showing that it’s not just another NBFC—it’s a serious player in the mission to support India’s grassroots economy. The co-lending model helps SBI meet its priority sector lending goals too.
Both players benefit. But most importantly, India’s small business owners win.
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