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Govt to Offer Rs 10,000 Collateral-Free Loans for Gig Workers from 2026

The government is reportedly designing a new microcredit programme set to launch in April 2026, offering collateral-free loans of up to Rs 10,000 per year to gig workers and domestic helpers. The scheme is modeled on the existing PM Street Vendors Atma Nirbhar Nidhi (PM-SVANidhi), which provides escalating loan amounts and interest subsidies. Eligibility will likely be tied to verification on the government's e-Shram portal, which has over 313.8 million unorganised workers registered. The restructured PM-SVANidhi scheme itself has been extended until 2030 with an increased outlay and expanded coverage areas.

Key Points: Collateral-Free Loans for Gig Workers, Domestic Helpers from 2026

  • Loans up to Rs 10,000 annually
  • Modeled on PM-SVANidhi scheme
  • For e-Shram registered workers
  • Aims to aid asset purchase
  • Extended until March 2030
2 min read

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

Government plans microcredit scheme offering Rs 10,000 annual loans to gig workers and domestic helpers, modeled on PM-SVANidhi, starting April 2026.

"help gig and platform workers -- many of whom lack formal credit histories to buy two‑wheelers and other assets needed for their work - Report"

New Delhi, Jan 17

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.

- IANS

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Reader Comments

S
Shreya B
Finally, some recognition for gig workers! We are a major part of the economy now. The interest subsidy and digital payment incentives are smart. But 2026 is still far away. Many need help *now*, especially with rising fuel costs.
A
Aman W
The intent is noble, but execution is key. The article says it mirrors PM-SVANidhi. My chaiwala bhaiya had a nightmare getting that loan due to local body surveys and licence issues. Will domestic helps have licences? Hope they simplify it for them.
P
Priyanka N
Including peri-urban areas is a great step. Development shouldn't just be for big cities. The UPI-linked RuPay card after timely repayment is a brilliant way to encourage financial discipline and digital adoption. A step towards true financial inclusion.
D
David E
Working in microfinance here, I see the potential. Collateral-free loans for this segment can be transformative. The tiered system (10k, then 20k, then 50k) based on repayment builds a credit history. That's more valuable than the money itself in the long run.
K
Kavitha C
My maid, Laxmi didi, has been asking about such schemes. She wants to buy a sewing machine to take on extra work. If this helps her become more atma nirbhar, nothing like it. But awareness is low. Government must run camps to explain it in simple language.

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