India’s gig workers and household helps are set for a financial lifeline. The central government plans to introduce a new microcredit program offering unsecured loans, potentially transforming access to capital for these underserved groups.
The gig sector, valued at $200 billion and growing 20% annually, employs over 15 million. Yet, formal credit remains elusive. Domestic workers, mostly women from marginalized communities, fare worse, relying on exploitative moneylenders.
Under the proposed scheme, loans will be disbursed via fintech partnerships, using alternative data like app earnings and utility payments for eligibility. No guarantors or property pledges required— a first for this segment.
This builds on successes like the e-Shram portal, which registered 300 million unorganized workers. Integration with platforms such as Zomato, Ola, and Rapido will enable real-time income verification.
Government officials emphasize scalability. ‘We’re targeting 10 million beneficiaries in the first year,’ one insider noted. Interest rates could hover at 8-10%, far below informal markets’ 36%+.
Critics point to risks: over-indebtedness and weak grievance redressal. But proponents argue data-driven underwriting minimizes defaults. Labor unions welcome it but demand insurance covers.
As consultations wrap up, this scheme underscores India’s pivot towards inclusive growth. For daily wage earners, it’s a step from survival to stability.
