DEG (a German development finance institution) and Citi (Citigroup) have cofinanced USD 76 mn for Shriram Finance to expand lending to micro, small and medium enterprises (MSME) and to scale electric vehicle lending in India. The funding forms part of a targeted effort to increase credit access for small firms and to support the transition to cleaner transport. The transaction underlines a strategic focus on broadening affordable finance for enterprise operators and on promoting the commercial rollout of electric mobility. The cofinancing package will be deployed across MSME working capital and investment loans and for vehicle financing linked to electric mobility. The arrangement is intended to enhance Shriram Finance's ability to onlend to enterprises and to authorised dealers and fleet operators investing in electric vehicles. Resources are expected to be channelled to support both cyclical cash needs and capital expenditure required for fleet electrification. DEG and Citi structured the facility to mobilise additional private capital and to provide longer tenors suited to asset-backed lending. The cofinancing avoids speculative exposure and seeks to strengthen the lender's balance sheet while improving credit availability for underserved segments. Risk management measures and due diligence frameworks have been embedded to ensure credit quality and to align the facility with sustainable lending principles. Shriram Finance is a non-banking financial company specialising in retail, small business and vehicle finance across urban and rural markets. The company will use proceeds to broaden product offerings, invest in digital origination channels and train credit teams to assess new electric vehicle business models. Its existing distribution network is expected to facilitate rapid uptake of tailored loan products among local dealers and small enterprises. Market participants expect the transaction to catalyse further investments into the MSME and electric vehicle ecosystems and to support job creation and supply chain resilience. The partners said the move aligns with wider development objectives to boost sustainable growth and financial inclusion. Observers anticipate that similar structures may attract other lenders and help standardise financing approaches for the sector.