Bengaluru: Leading app-based cab service provider Ola on Friday said it teamed up with small business debt-financing platform Indifi to lend personal loans for drivers registered on its platform.
“Access to financing for personal needs is essential to help them (Ola drivers) achieve their goals and with an improved repayment capability, this partnership makes it completely hassle free for drivers,” said Pranay Jivrajka, COO of Ola, in a statement.
Ola has already begun disbursing personal loans to meet needs such as marriage, business of spouse, repayment of hand loans, home renovation and other such requirements of its drivers in Bengaluru and Pune.
In the next six months, Ola aims to expand the facility with multiple financing partners in six more cities, the firm said.
However, the personal loan facility has been restricted only to those Ola drivers who have been with the company for more than six months or paid a minimum of eight EMIs for their car loan.
In 2014, Ola earmarked a Rs.100 crore fund to invest in its driver ecosystem to empower drivers to become entrepreneurs, the statement said.
Founded by IIT – Bombay pass-outs Bhavish Aggarwal and Ankit Bhati in January 2011, Ola currently operates in 102 locations in India offering 3,50,000 cabs and auto-rickshaws for hire.
Gurgaon-based Indifi will finance the personal loans through Edelweiss Retail Finance and aims to automate small and medium businesses financing in India.