Daijiworld Media Network - New Delhi
New Delhi, Jan 18: The Centre is reportedly working on a new microcredit initiative aimed at extending small, collateral-free loans to gig workers, domestic helpers and other vulnerable sections, with the scheme likely to be rolled out in April 2026.
According to reports, the Ministry of Housing and Urban Affairs is designing the programme on the lines of the Prime Minister Street Vendors’ Atma Nirbhar Nidhi (PM-SVANidhi) scheme, which currently offers working-capital loans to street vendors to support livelihoods.
Under the proposed initiative, eligible beneficiaries may receive loans of up to Rs 10,000 per year without any collateral. The scheme is expected to address a key challenge faced by gig and platform workers, many of whom lack formal credit histories and struggle to access finance for essential assets such as two-wheelers and work equipment.
The structure of the new programme is likely to mirror PM-SVANidhi, under which street vendors are initially offered Rs 10,000 loans and can access higher tranches of Rs 20,000 and Rs 50,000 upon timely repayment. The existing scheme also provides a 7 per cent interest subsidy and incentives for digital transactions.
Eligibility for the upcoming microcredit scheme is expected to follow a similar verification process. Workers registered on the government’s e-Shram portal, possessing valid government-issued identification and a Universal Account Number, are likely to be prioritised. Under PM-SVANidhi, vendors are required to hold licences and be listed in urban local body surveys.
As of November 2025, the e-Shram portal had over 31.38 crore registered unorganised workers, including more than 5.09 lakh gig and platform workers. Reports indicate that verified workers on the portal will be among the first beneficiaries of the new lending programme.
Meanwhile, the government has restructured the PM-SVANidhi scheme to expand its reach to 1.15 crore beneficiaries, including 50 lakh new participants. The lending period under the scheme has been extended until March 31, 2030, with a total financial outlay of Rs 7,332 crore.
Key enhancements under the revamped PM-SVANidhi include higher loan limits in the initial tranches and the introduction of a UPI-linked RuPay credit card for beneficiaries who successfully repay their second loan. The scheme’s coverage is also being gradually expanded beyond statutory towns to include census towns and peri-urban areas, reflecting a broader push to improve credit access for informal workers.