SIDBI, Onion Life partner to provide micro-loans to gig workers

New Delhi, April 6: Small Industries Development Bank of India (SIDBI) on Saturday partnered with fintech portal Onion Life to use its technology platform KarmaLife for a pilot to provide small enterprise loans to gig workers.

With the rapid growth of the gig economy in India, providing affordable and accessible financial support to non-salaried gig workers, who provide services through gig platform aggregators, has become more essential.

"SIDBI is committed to using the latest digital technology for providing affordable credit to different categories of micro-enterprises to fuel the entrepreneurial aspirations across the country. In this regard, the partnership with Onion Life will help us understand and assist the new and emerging enterprise class of gig workers," said S Ramann, CMD, SIDBI.

KarmaLife will help gig workers access micro-loans via a mobile app while cutting down the hassle of extensive paperwork or physical documentation. The technology process will make it easier for gig workers to manage the liquidity needs of their enterprise activities.

Ramann noted that the pilot will also help in “developing an institutional mechanism for assessment of credit risk” of the gig economy.

"We are excited to be associated with SIDBI to empower gig workers with the financial resources they need to thrive in the gig economy. Our mission is finding effective solutions to help gig workers efficiently manage liquidity for their enterprises,” added Rohit Rathi, Co-founder and CEO, Onion Life.