Small Industries Development Bank of India (SIDBI) entered into an agreement with a fintech Onion Life Private Limited to use its technology platform KarmaLife for a pilot to provide small enterprise loans to gig workers and support their financial inclusion to formal institutional credit. With the gig economy rapidly growing in India, there is a pressing need to provide affordable and accessible financial support to non-salaried gig workers providing their services through gig platform aggregators for livelihood.
Onion Life’s innovative technology platform “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 liquidity needs of their enterprise activities.
Speaking on the occasion, Shri S Ramann, CMD, SIDBI said, "SIDBI is committed to use 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.
The pilot will also help in developing an institutional mechanism for assessment of credit risk of this segment." Mr Rohit Rathi, Co-founder and CEO said, "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.”
About SIDBI:
SIDBI is India's principal financial institution in India for promotion, development, and financing of Micro, Small, and Medium Enterprises (MSMEs). SIDBI plays a critical role in supporting entrepreneurship, economic growth, and financial inclusion across the nation though various programs like credit guarantee, direct credit, venture capital, digital platforms, government program management, etc. For more information, please visit: https://www.sidbi.in/
About OnionLife Private Limited:
Onion Life Private Limited is a Bengaluru based fintech firm that operates a mobile app, "KarmaLife." As India's premier Earned Wage Access platform, KarmaLife dedicated to providing liquidity to gig workers through strategic lending partnerships. For more information, please visit https://karmalife.ai/