Is the Centre Set to Introduce Collateral-Free Loans for Gig Workers and Domestic Helpers?
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Synopsis
In a significant move, the Indian government is likely to introduce a microcredit program aimed at providing collateral-free loans to gig workers and domestic helpers. Set to launch in April 2026, this initiative promises to empower vulnerable groups financially, facilitating access to essential resources without the burden of collateral.
Key Takeaways
- Collateral-free loans up to Rs 10,000 for gig workers.
- Scheme set to launch in April 2026.
- Eligibility based on e-Shram portal registration.
- Timely repayment can unlock further loan amounts.
- Expanded coverage to include more areas beyond statutory towns.
New Delhi, Jan 17 (NationPress) The government is reportedly gearing up to initiate a microcredit program in April 2026, which will provide collateral-free loans of up to Rs 10,000 per annum specifically targeting gig workers, domestic helpers, and various vulnerable groups.
The Ministry of Housing and Urban Affairs is believed to be crafting this scheme based on the framework of the PM Street Vendors Atma Nirbhar Nidhi (PM-SVANidhi). This existing initiative offers small working capital loans to street vendors, according to multiple reports.
Within the PM-SVANidhi framework, vendors receive initial loans commencing at Rs 10,000, and upon timely repayment, they become eligible for further tranches of Rs 20,000 and Rs 50,000, along with a 7% interest subsidy and additional benefits for utilizing digital payment methods.
The upcoming scheme aims to assist gig and platform workers—many of whom lack formal credit histories—enabling them to purchase essential assets like two-wheelers.
Eligibility criteria are expected to align with the verification process used in PM-SVANidhi, where beneficiaries must be registered on the government’s e-Shram portal, hold government-issued identity cards, and possess a Universal Account Number.
For PM-SVANidhi, vendors are required to have a license and be listed in urban local body surveys.
As of November 2025, over 313.8 million unorganized workers and more than 5.09 lakh gig and platform workers were recorded on the e-Shram portal, with those verified being prioritized for the new loans, as per reports.
The restructured Prime Minister Street Vendor’s Atma Nirbhar Nidhi (PM-SVANidhi) scheme is designed to benefit 1.15 crore individuals, including 50 lakh new beneficiaries, as previously informed by the government.
The lending timeframe has been extended until March 31, 2030, with a total financial commitment of Rs 7,332 crore.
Key features of the restructured scheme include enhanced loan amounts for the first and second tranches, as well as the provision of a UPI-linked RuPay Credit Card for beneficiaries who have successfully repaid the second loan on time.
The coverage of the scheme is being broadened to include not just statutory towns but also census towns, peri-urban areas, and more, in a phased approach.
Point of View
This initiative by the government is a commendable step towards financial inclusion, particularly for gig workers and domestic helpers who often find it challenging to access credit. By removing collateral requirements, the government is paving the way for a more equitable financial landscape, allowing these workers to invest in their futures.
NationPress
17/01/2026
Frequently Asked Questions
What is the purpose of the new microcredit program?
The new microcredit program aims to provide collateral-free loans to gig workers, domestic helpers, and other vulnerable groups, helping them secure essential assets.
When will the program be launched?
The government plans to launch the microcredit program in April 2026.
How much can beneficiaries borrow?
Beneficiaries can borrow up to Rs 10,000 per annum under this scheme.
Who is eligible for the loans?
Eligibility will include workers registered on the e-Shram portal who possess government-issued identity cards and a Universal Account Number.
What are the benefits of timely repayment?
Timely repayment may lead to eligibility for further loan tranches and additional incentives, such as interest subsidies.
