How Paisalo Digital Is Powering Rural India With SBI-Backed MSME Loans And Smart Tech

Introduction To Paisalo Digital Limited

Paisalo Digital Ltd (“Paisalo”) is a leading Non-Banking Financial Company (NBFC) in India, recognised as systemically important and publicly listed, with a market capitalisation of INR 2,877 crore as of June 2025. Founded in 1992, the company specialises in providing micro and small business loans (MSME loans) to self-employed individuals, particularly in rural and semi-urban parts of the country. With a strong mission to promote financial inclusion, Paisalo plays a key role in extending credit to underserved segments of India that often lack access to traditional banking services.

The company has built a unique co-lending model in partnership with the State Bank of India (SBI), where SBI contributes 80% of the loan capital while Paisalo handles the complete loan lifecycle from origination to collection. 

This partnership allows the company to scale efficiently while managing risk effectively. Operating in 22 states through 351+ branches and service points, Paisalo has served over 95 lakh borrowers to date. 

As of March 2025, the company has an Assets Under Management (AUM) of approximately INR 5,232 crore, with a robust Capital to Risk-Weighted Assets Ratio (CRAR) of 39.2% and Gross NPA of just 1.0% on its standalone book, demonstrating its strong portfolio quality and prudent lending practices.

Board Of Directors Of Paisalo Digital Limited 

Here is the list of Board of Directors of Paisalo Digital Limited, along with their designations:

1. Mr. Sunil Agarwal – Managing Director
2. Mr. Harish Singh – Executive Director
3. Mr. Anoop Krishna – Executive Director
4. Mr. Vinod Kumar – Executive Director
5. Mr. Santanu Agarwal – Deputy Managing Director
6. Mr. Gauri Shankar – Independent Director
7. Mr. Vijuy Ronjan – Independent Director
8. Mr. Raman Aggarwal – Independent Director
9. Ms. Nisha Jolly – Independent Director
10. Dr. Dharmendra Singh Gangwar – Independent Director
11. Mr. Jitendra Kumar Ojha – Independent Director

Source: Paisalo Digital Limited.¹

Products Offered By Paisalo Digital Ltd.

1. Small Income Generation Loans

These loans support individuals or micro-businesses aiming to boost their income. Offered under schemes like Umeed, Pragati, and Vikas, Paisalo provides accessible funds to enable trade, agriculture, or small-scale services. This empowers borrowers to start new ventures or scale existing ones with ease.

2. Mobility Loans

Designed for financing mobility assets, such as auto-rickshaws, electric rickshaws, two-wheelers, and tempos, these loans aim to foster sustainable and income-generating transport solutions in rural and semi-urban India. Loan ticket sizes range from around INR 80,000 to INR 3,00,000, with tenures of 18-36 months. 

3. Udaan Entrepreneurial Loans

Branded as Udaan (meaning "flight"), these loans help small business owners and budding entrepreneurs access capital quickly. Suitable for both existing businesses and new ventures including women's self-starters. This product supports expansion, working capital, or platform adoption. Applications are processed swiftly for timely funding.

4. Corporate Loans

Paisalo also extends larger loans to micro and small enterprises (MSMEs) under its corporate loan portfolio. Loan sizes can go up to INR 5 crore, combining co-lending frameworks and corporate partnerships to support significant business or growth initiatives.

5. Co?Lending with SBI

In a strategic partnership with State Bank of India, Paisalo follows a co-lending model where SBI provides 80% of the loan funding and Paisalo manages the full loan cycle, from sourcing and underwriting to servicing and collections. This model ensures low-cost credit access with doorstep delivery and efficient management.

Additional Services

1. Business Correspondent Services

Paisalo operates over 970 CSP outlets as an authorised Business Correspondent (BC) for multiple banks, catering to cash deposits, withdrawals, fund transfers, passbook updates, ATM PIN services, account openings, and mini statements in rural areas.

2. Financial Education & Impact

The company also offers programmes to improve financial literacy among small business owners, covering topics like budgeting, cash flow, and credit management—to help borrowers make smarter financial choices.

Why This Product Mix Matters

Paisalo’s product portfolio is well-suited for its mission of financial inclusion. By offering a range of small-ticket loans, entrepreneurial finance, mobility asset funding, and robust co-lending solutions, the company ensures that credit and banking services reach the underserved population in rural and semi?urban India. This “high tech, high touch” approach blends digital efficiency with local human support to create a scalable and inclusive lending model.

Source: Paisalo Digital Limited²

Paisalo Digital Ltd. Customer Care

For any sales related queries or support, Paisalo’s customer care team is here to help. You can reach them at +911143518888 or email: grievance@paisalo.in.

Paisalo Digital: High-Tech, High-Touch MSME Lending For Rural India

Paisalo Digital has carved out a distinctive space in the financial ecosystem by blending technology with human-centric service—what it calls a “high-tech, high-touch” approach. This model is especially effective for the rural and semi-urban MSME segment, where borrowers often lack formal income documentation or digital fluency. While many NBFCs struggle to reach this audience efficiently, Paisalo leverages its deep on-ground presence and digital infrastructure to bridge the gap between informal borrowers and formal credit.

At the core of its high-tech strategy is Paisalo’s proprietary mobile-first lending platform. The app is built to simplify everything from loan application and credit assessment to disbursal and collections. It uses digital KYC, paperless onboarding, and API integrations to offer seamless, fast, and cost-efficient service—even in remote areas. 

At the same time, Paisalo maintains regular physical touchpoints through its 350+ branches and service centres, ensuring trust and relationship-based lending. This combination allows Paisalo to scale efficiently while maintaining high collection efficiency, low NPAs, and customer loyalty, making it a frontrunner in digitally enabled rural finance.

Also Read: Nido Home Finance

Key Strengths Of Paisalo Digital Ltd.

Key Strengths of Paisalo Digital Ltd. (Simplified)

1. Over 30 Years of Experience and Publicly Listed Status
Paisalo has been in the lending business for more than 30 years, building a solid and profitable track record by serving customers in rural and semi-urban areas, segments that are usually overlooked by traditional banks. 

The company is listed on both the NSE and BSE, which means it must follow strict rules on financial reporting and transparency. Being listed also helps Paisalo raise funds from a wide range of investors and maintain strong corporate governance.

2. Excellent Asset Quality and Strong Collections
Even though Paisalo lends mostly to people without formal incomes, it has done a great job keeping its loans healthy. As of March 2025, it reported a very low Gross NPA (bad loan ratio) of just 1.0%. In fact, its co-lending portfolio with the State Bank of India (SBI) performed even better, with GNPA under 1.0%. 

The company’s collection efficiency, how much of the loan amount is repaid on time, has stayed above 95%, thanks to its careful loan screening, regular borrower follow-ups, and use of digital tools to monitor repayments.

3. Strong Capital and Trusted Backing
Paisalo is on solid financial ground with a Capital to Risk-weighted Assets Ratio (CRAR) of 39.2% as of March 2025, which is far above the RBI’s required minimum. The company is also supported by respected investors, including SBI Life Insurance, LIC, Vanguard, and Abu Dhabi Investment Authority. 

Its debt-to-equity ratio remains low at 2.2 times, and it has sound policies in place to manage loan defaults. All this helps the company maintain lender trust and financial stability through economic ups and downs.

4. Valuable Co-Lending Tie-Up with SBI
One of Paisalo’s biggest strengths is its partnership with SBI under the co-lending model. In this setup, SBI funds 80% of each loan, while Paisalo handles everything—from finding borrowers to disbursing and collecting repayments. This allows Paisalo to grow its loan book without putting too much pressure on its own balance sheet. It also lowers its risk exposure and boosts returns, making the business more efficient and scalable.

5. Digital-First and Easily Scalable Operations
Paisalo runs a tech-driven lending model using its own digital platform. From loan application to repayments, the entire process is managed digitally. The company follows a mobile-first approach and uses APIs (software integrations) to onboard customers quickly, even in remote rural areas. 

This approach keeps operating costs low and allows Paisalo to scale up its business much faster than traditional lenders.

Similar Read: TruCap Finance Limited

Financial Snapshot Paisalo Digital Ltd.

Source: audited financials, credit rating reports

To arrange the capital, Paisalo Digital Ltd. also offers corporate bonds. These opportunities from the company are secured and are rated by credit rating agencies. On Grip Invest, investors invested in Credit ‘AA’ rated bonds of the company that offered fixed returns of up to 11%. To invest in similar, rated, regulated and secured fixed-income opportunities sign-up for Grip Invest today and start earning fixed returns:

References:

1. Paisalo Digital Limited, accessed from: https://paisalo.in/home/aboutus

2. Paisalo Digital Limited, accessed from: https://paisalo.in/home/products

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