Paisalo Digital Limited (NSE:PAISALO) announced on August 19, 2026, via a Regulation 30 press release, that it has signed a Memorandum of Understanding with LoanKhata for a proposed co-lending facility of up to Rs 1,000 crore, focused on micro-enterprise and MSME borrowers across India.
Key Highlights
- Paisalo Digital and LoanKhata have signed an MoU for a proposed co-lending facility aggregating up to Rs 1,000 crore, with Paisalo funding 80% and LoanKhata funding 20% of each eligible loan.
- The partnership targets micro-enterprise and MSME borrowers in semi-urban and rural India, combining Paisalo's 5,995 touchpoints with LoanKhata's network of over 1,00,000 retailer and CSP touchpoints.
- LoanKhata brings access to a stated customer base of over 90 million, intended to strengthen last-mile sourcing and borrower onboarding for the combined distribution system.
- The proposed facility is described as a step in Paisalo's three-year strategic roadmap aimed at doubling AUM, total income, and PAT while maintaining asset quality discipline.
About the Company
Paisalo Digital Limited (NSE:PAISALO, BSE:532900), headquartered in New Delhi, is an NBFC engaged in providing formal credit to MSMEs, micro-enterprises, and underserved borrowers across India. As of Q1 FY27, the company operates 424 branches, 3,997 distribution points, and 1,574 business correspondents spanning 23 states and union territories.
Announcement in Detail
Under the MoU signed on August 19, 2026, Paisalo Digital and LoanKhata intend to establish a co-lending facility of up to Rs 1,000 crore. The proposed participation structure envisages Paisalo contributing 80% and LoanKhata contributing 20% of each eligible loan disbursed under the arrangement. The facility is intended to focus on micro-enterprise and MSME borrowers.
The press release notes that Paisalo's distribution network has grown from 1,052 touchpoints in FY23 to 5,995 touchpoints as of Q1 FY27. LoanKhata is stated to add a last-mile ecosystem of over 1,00,000 retailers with CSP registration and a customer base exceeding 90 million. Deputy Managing Director Santanu Agarwal stated the partnership is intended to scale borrower acquisition while preserving credit discipline.
Impact on Investors
Investors will note that the announcement describes an MoU, which represents an intent to establish the co-lending facility rather than a binding executed agreement. The disclosed terms indicate that Paisalo would fund 80% of each co-lent loan, meaning the majority of credit exposure under the proposed facility would sit on Paisalo's books. The filing shows this arrangement is framed as part of a broader three-year plan to double AUM, income, and PAT, though no specific timeline or interim targets for the partnership itself are disclosed.
Shareholders will observe that the partnership is described as asset-light in terms of distribution scale via LoanKhata's retailer network, though the credit risk concentration remains with Paisalo given the 80% funding share. No consideration, fee structure, or profit-sharing arrangement between the two parties is disclosed in the press release.
Sector / Market Context
Co-lending arrangements between NBFCs and fintech or distribution partners have expanded following RBI's co-lending model framework, which allows regulated lenders to share credit risk and origination with partners to reach priority sector borrowers. MSME credit demand across semi-urban and rural India remains a significant focus area for financial regulators and policymakers, with SIDBI and RBI both citing persistent gaps in formal credit access for micro-enterprises.