Ola to provide interest-free loans to drivers in face of COVID-19 lockdown

Ola cabs has announced the introduction of a micro-credit initiative for its drivers, in a bid to lend financial aid in times of the ongoing COVID-19 crisis.

Ola to provide interest-free loans to drivers

Ola cabs has announced the introduction of a micro-credit initiative for its drivers, in a bid to lend financial aid in times of the ongoing COVID-19 crisis.

The initiative is called ‘Sahyog’ and is being targeted at over 1 lac driver-partners that are presently associated with Ola cabs.

It will provide interest-free loans to drivers on its platforms to address the immediate liquidity crisis faced by drivers across the country.

Drivers of cabs have been hard hit under the COVID-19 lockdown, with many not having funds to make ends meet.

As part of the initiative, Ola cabs will be extending small loans of Rs 1,200 per person per week, for three weeks, hence extending total financial assistance of Rs 3,600 per driver.

Ola will disburse these loans via micro-finance company Avail Finance to drivers across its categories including Ola Auto, Ola Rentals and Outstation.

“Sahyog enables them to access micro-credit instantly, in their registered bank accounts, allowing drivers and their families to tide through these difficult times,” said Anand Subramanian, Spokesperson and Head of Communications, Ola in a statement.

“Avail’s platform will help Ola identify eligible driver-partners as well as to manage the disbursement of credit in real-time,” said Ankush Aggarwal, Founder & CEO, Avail Finance.

This unique offering is tailor-made for Ola driver-partners and will help address immediate liquidity needs of over a lakh families driver-partners and their families pan India.

This move follows Ola’s multiple initiatives focused on the well-being and economic upliftment of the driver community, who have been one of the worst-hit due to the COVID-19 pandemic.