Centre likely to roll out collateral?free loans for gig workers, domestic helpers soon

New Delhi, Jan 17 (IANS) The government reportedly plans to launch a microcredit programme in April 2026, offering collateral?free loans of up to Rs 10,000 per annum to gig workers, domestic helpers, and other vulnerable groups.

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

Under PM?SVANidhi, vendors receive initial loans starting at Rs 10,000, and on timely repayment, they become eligible for subsequent tranches of Rs 20,000 and Rs 50,000, along with a 7 per cent interest subsidy and additional incentives for adopting digital payments.

The new scheme aims to help gig and platform workers -- many of whom lack formal credit histories to buy two?wheelers and other assets needed for their work.

Eligibility is expected to mirror PM?SVANidhi’s verification approach, where beneficiaries will include workers registered on the government’s e?Shram portal who hold government?issued identity cards and a Universal Account Number.

PM-SVANidhi needs vendors to hold a licence and be included in urban local body surveys.

As of November 2025, more than 313.8 million unorganised workers and over 5.09 lakh gig and platform workers were registered on the e-Shram, and those verified on the portal will be first in line for the new loans, the reports said.

Under the restructured Prime Minister Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi) Scheme, which aims to benefit 1.15 crore beneficiaries, including 50 lakh new beneficiaries, the government had informed earlier.

The lending period has now been extended until March 31, 2030. The total outlay for the scheme is Rs 7,332 crore, the statement added.

The key features of the restructured scheme include enhanced loan amounts across the first and second tranches, provision of a UPI-linked RuPay Credit Card for beneficiaries who have timely repaid the second loan.

The scheme’s coverage is being expanded beyond statutory towns to census towns, peri-urban areas, etc, in a graded manner.