SIDBI joins tech platform KarmaLife to offer micro loans for gig workers

SIDBI has entered into an agreement with a fintech Onion Life Private Limited to use the latter’s technology platform, KarmaLife, for a pilot to provide micro loans to gig workers. This is expected to support the gig workers’ inclusion to formal institutional credit.

KarmaLife will help gig workers access micro loans through a mobile app and eliminates the hassle of extensive paperwork or physical documentation. This streamlined process will make it easier for gig workers to manage the liquidity needs of their enterprise activities.

“Our partnership with Onion Life will help us understand and assist the new and emerging enterprise class of gig workers. The pilot will also help in developing an institutional mechanism for assessing the credit risk of this segment,” SIDBIChairman and Managing Director S Ramann said.

He said that SIDBI is committed to using the latest digital technology to provide affordable credit to different categories of microenterprises. With the gig economy rapidly growing, there is a pressing need to provide affordable and accessible financial support to non-salaried workers who provide services through gig platform aggregators.