Centre plans collateral-free microloans for gig and domestic workers

The Centre is set to launch a microcredit programme offering collateral-free loans of up to ₹10,000 per year to gig workers, domestic helpers, and other vulnerable groups, according to the Economic Times.

The Ministry of Housing and Urban Affairs is designing the scheme on the lines of the PM Street Vendors Atma Nirbhar Nidhi (PM-SVANidhi), which supports street vendors with small working capital loans.

The initiative will allow gig and platform workers, many of whom lack a formal credit history, to access loans to buy two-wheelers and other assets needed for their work.

What is PM-SVANidhi?

Under PM-SVANidhi, street vendors receive collateral-free loans starting at ₹10,000. Timely repayment makes them eligible for further tranches of ₹20,000 and ₹50,000, along with a 7 per cent interest subsidy and incentives for using digital payment methods.

According to the report, a senior government official said that the microcredit scheme had been very successful with minimal defaults and that, with the gig economy expanding, there was a clear need to extend similar support to gig workers and domestic helpers.

Eligibility and registration

PM-SVANidhi requires vendors to hold a licence and be included in urban local body surveys. Likewise, the new scheme is expected to cover gig workers registered on the e-Shram portal, who have government-issued identity cards and a Universal Account Number.

As of November 2025, over 313.8 million unorganised workers and more than 509,000 gig and platform workers are registered on the portal. These verified workers will be the first to benefit when the scheme is launched in April 2026.