Paisalo Digital has entered into a Co-Lending Loan Arrangement for SME products with the State Bank of India (SBI), the country's largest public sector bank. This agreement, formalised on June 26, 2025, marks a significant extension of the existing SBI–Paisalo partnership and further strengthens their collaborative platform for inclusive credit delivery.

This new co-lending arrangement builds upon the already operational co-lending (formerly co origination) digital platform established between Paisalo and SBI in 2021. It is fully aligned with the Reserve Bank of India's guidelines on co-lending of loans issued on November 5, 2020, which aim to deepen credit flow to priority sectors, including micro, small and medium enterprises (MSMEs), by leveraging the combined reach and strengths of banks and NBFCs.

Under this arrangement, SBI and Paisalo will jointly fund SME loans, enabling wider access to formal credit for India's growing base of small businesses, especially in tier 2, tier 3 cities and rural markets. The SBI–Paisalo co-lending platform is a digital platform that offers end-to-end services for loan origination, processing, disbursement, servicing, and recovery, ensuring efficiency and transparency throughout the loan lifecycle.