In the last few years, there has been a tremendous increase in demand of cab services of Ola and Uber in India. Especially in metro cities people are preferring these private cabs over their personal car. To meet the supply and expand their business, Ola and Uber are luring more and more individuals to join them as drivers. However not every individual, wanting to partner these cab aggregators, has financial capacity to own a car.
To over come this problem, both these companies offer car loans to drivers so that they can buy car and work for them. So it is a win-win situation for both the parties. These cab service companies are helping individuals to own car and at the same time drivers are able to overcome hurdle of becoming self employed and earn decent income and most importantly a respectable job.
Ola and Uber both offer financing for cars in partnership with various banks/lenders.
Car Loan for Uber Drivers
Uber has partnered with following Indian banks to offer loan for cars who ply on their network. Listed in the below table are the banks and the interest rate:
|Name of Bank||Interest Rate/EMI|
|State Bank of India||Under 12%|
|ICICI Bank||Not available. Please contact branch|
|Bank of Baroda||10.65% 13.65%|
|Mahindra Finance||Not available. Please contact branch|
Benefits & Features:
- Loan is sanctioned instantly
- Processing time is very low compared to normal car loan
- No collateral required
- Interest rates are very competitive. Interest rate from Bank of Baroda starts from minimum 10.65%
- Very minimal documentation required
- Customizable schemes as per the financial condition of the applicant
- There is no need to provide income tax returns
- Repayment is directly through the driver’s earnings. Uber deducts dues from every fare received in the driver’s account.
- No guarantor
- Downpayment is very less. In case of Tata Capital it is just Rs. 31, 630.
- Driver should hold valid driving license
- Age of the applicant should be minimum 21 years
- Know your customer documents
- Valid commercial driving license
Loan for Ola Cab Drivers:
In case of Ola, it has partnered with biggest bank in India – State Bank of India. The name of the scheme is Ola Pragati program. SBI won’t be charging equated monthly installment but repayment would be on a daily basis. The interest rate charged by SBI is average 13%.
Ola has also partnered with IDBI bank and Tata Capital to offer financial assistance to cab drivers.
Read more on personal loan for low income individuals.
Features of loan by Tata Capital
- Loan with lowest down payment
- No foreclosure charges
- No EMI option. Instead drivers will have to pay installment every week.