Modi Govt's New Scheme: Rs. 10,000 Collateral-Free Loans for Gig Workers

• The central government has launched a new scheme to provide financial assistance to gig workers like delivery boys, cab drivers, and domestic workers.
• The scheme offers collateral-free loans of up to Rs. 10,000 per year, inspired by the successful PM SVANidhi scheme for street vendors.
• It aims to help gig workers purchase necessary tools or two-wheelers, overcoming the lack of credit history that often prevents them from getting bank loans.
• Similar to PM SVANidhi, the scheme is expected to offer interest subsidies and incentives for digital payments, with loans potentially increasing up to Rs. 50,000 in subsequent cycles.
• Eligibility requires registration on the e-Shram portal with a government-issued identity card and UAN; loan distribution is expected to begin in April 2026.

Why It Matters: Modi government introduces a new micro-credit scheme offering collateral-free loans up to Rs. 10,000 for gig workers.