Reimagining rural MSME finance: How collaborative lending strengthens India’s regional rural banks

• by Harihar Dubey, Niyanta Desai, Zeba Birjis and Ashwin Shukla
• Sep 1, 2026
• 1 min
Download resource

This policy examines how collaborative lending can strengthen Regional Rural Banks’ ability to finance rural MSMEs. It explores how partnerships can combine institutional strengths to improve credit access and better serve rural businesses.

This policy explores how collaborative lending can help Regional Rural Banks (RRBs) strengthen their role in financing rural micro, small, and medium enterprises (MSMEs). It focuses on how partnerships can combine RRBs’ regional presence and customer relationships with complementary capabilities from other lending institutions. The report highlights how such collaboration can support wider and more effective access to formal finance for rural businesses, while strengthening RRBs’ capacity to diversify their portfolios and deepen their engagement with the rural MSME segment.