In a major boost for India’s informal workforce, the government is gearing up to launch a groundbreaking microcredit scheme tailored for gig workers and domestic helpers. This initiative promises collateral-free loans, addressing a long-standing barrier for millions in these sectors.
Gig economy participants like delivery riders, cab drivers, and freelancers often struggle with financial exclusion. Domestic aides, numbering over 50 million, face similar hurdles. Traditional banks demand guarantees these workers can’t provide, trapping them in a cycle of debt from unregulated lenders.
Sources close to the development reveal the scheme will be rolled out through digital platforms, leveraging UPI and Aadhaar for seamless disbursal. Loans up to ₹50,000 could be available at subsidized interest rates, with repayment linked to income flows via apps like Swiggy or Uber.
The move aligns with the Union Budget’s emphasis on financial inclusion. Finance Minister Nirmala Sitharaman had hinted at such measures during recent announcements. Pilot programs in states like Uttar Pradesh and Karnataka have shown promising recovery rates above 90%.
Experts hail this as a game-changer. ‘It empowers the invisible workforce driving India’s growth,’ says economist Ranu Sharma. However, challenges remain, including credit assessment for irregular incomes and preventing misuse.
Once launched, the scheme could integrate with PMJDY and Mudra Yojana, creating a robust safety net. For gig workers and maids, it’s not just credit—it’s dignity and opportunity. The coming months will be crucial as guidelines are finalized.