The ministry of housing and urban affairs is working on a scheme to provide working capital loans to gig workers on the pattern of PM Street Vendors Atma Nirbhar Nidhi (PM-SVANidhi). Gig and platform workers, who do not have a credit history in formal banking system, will be able to take loans to buy two-wheelers to help them in their entrepreneurial journey.
PM-SVANidhi scheme is a flagship programme of the Centre and was introduced on June 1, 2020 after Covid-19 outbreak to provide support to street vendors. Despite the initial scepticism that street vendors will not repay the loan, the scheme has been a success with the ministry expanding its scope. So far, 1.05 crore loans have been disbursed.
Under this scheme, street vendors are provided collateral-free working capital loans of up to ₹10,000. Once the first tranche is paid in time, street vendors are eligible for a second tranche of ₹20,000 and then a third of ₹50,000. There is an interest subsidy of 7% on timely or early repayment of loan and incentive for using digital payment platforms.
According to sources, the ministry has now proposed a similar facility for gig workers and domestic helps, which will be introduced in the next fiscal starting April 2026.
A senior government official, who did not wish to be identified, told ET, “The microcredit scheme has been a huge success and there is bare minimum default in repayment. This is why a similar scheme is being worked out. Also, with the gig economy expanding there is a need felt to ease loans for gig workers and other vulnerable sections who want to start their entrepreneurial journey.”
PM-SVANidhi has only one major requirement that street vendors applying for loans should be covered by urban local bodies surveys and have a vending license. Similar to this, the government is likely to include gig workers who have government-issued identity cards and are registered with e-Shram portal, an initiative which was launched in 2021. The Centre has already issued a Universal Account Number to gig and platform workers.As per government statistics, as of November 2025, over 31.38 crore unorganised workers and over 5.09 lakh gig and platform workers have already been registered on the e-Shram portal.
The new scheme will cover these workers first since they have been verified by the government.