At a time while the online taxi aggregation industry is fraught with high demand and low supply, Ahmedabad-based Ola on launched a daily loan repayment program for drivers, in organization with the country’s largest lender State Bank of India (SBI).
Under the program, which has been named ‘Ola’, SBI will offer car loans to drivers who work with Ola under a daily settlement scheme as beside the current practice of equated monthly installment (EMI). The program will also give the advantage of a lower down payment and faster clearance of loans for Ola drivers.
Drivers who benefit a loan under this program will need to continue working with Ola for 72 hours a week for a particular period of time, depending on the terms of their loan. If they choose o change the operator that they work with, their loans would be transformed into a usual car loan with SBI.
“EMI is best suitable for the salaried class. Drivers have a cash inflow on a daily beginning and for them to pay a knob sum at the end of the month is difficulty,” said Puneet Singh Arora, head strategic initiatives at Ola. “Ola expects at least 1,00,000 driver entrepreneurs enrolling under the Ola Pragati program in the next couple of years.
As per the program, a driver can get a loan for a down payment of just 10%, with a standard interest rate of 13%. The loans under the method will be cleared within 24 hours and the repayment amount for drivers is estimated at Rs 700-800 per day.
The company said that the daily payment tool gives the financing institution better visibility of loan repayment and more lending comfort. The program will work in sync with the daily completion process of Ola drivers.
Ola presently operates in 67 cities and clocks over 2,35,000 rides per day. The company has launched numerous initiatives in the past to support drivers.
Recently, Ola had set up a fund of Rs 150 crore to enable drivers buy their own cars and turn driver entrepreneurs. The company has run some proposals in the past two years to support drivers.
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