SIDBI companions fintech platform KarmaLife for micro loans to gig employees

Small Industries Improvement Financial institution of India (SIDBI) has entered into an settlement with a fintech Onion Life Non-public Restricted to make use of the latter’s know-how platform KarmaLife for a pilot to offer micro loans to gig employees. That is anticipated to help the gig employees’ monetary inclusion to formal institutional credit score.

KarmaLife will assist gig employees entry micro loans by means of a cellular app and eliminates the trouble of in depth paperwork or bodily documentation.

This streamlined course of will make it simpler for gig employees to handle the liquidity wants of their enterprise actions. “Our partnership with Onion Life will assist us perceive and help the brand new and rising enterprise class of gig employees. The pilot can even assist in growing an institutional mechanism for assessing the credit score threat of this phase,” S Ramann, Chairman and Managing Director of SIDBI, mentioned.

He mentioned that SIDBI is dedicated to utilizing the most recent digital know-how to offer reasonably priced credit score to totally different classes of micro-enterprises and gas entrepreneurial aspirations throughout the nation.

With the gig economic system quickly rising in India, there’s a urgent want to offer reasonably priced and accessible monetary help to non-salaried gig employees who present their providers by means of gig platform aggregators for livelihood.

Rohit Rathi, Co-founder and CEO, mentioned, “We’re excited to be related to SIDBI, which is able to empower gig employees with the monetary sources they should thrive within the gig economic system. Our mission is to search out efficient options to assist gig employees effectively handle liquidity for his or her enterprises.”