Coronavirus crisis: Ola offers interest-free micro credit to driver-partners
Ride-hailing platform Ola on Tuesday said it will offer interest-free credit of up to ₹3,600 to driver-partners to help them meet immediate household expenses amid the coronavirus pandemic.
Under its 'Sahyog' programme, Ola will offer pre-approved credit of up to ₹3,600 to be disbursed over three weeks using the micro-finance lending platform, Avail Finance, a statement said.
The amount will be offered interest-free to drivers operating auto-rickshaws, cabs, kaali-peelis and taxis on the Ola platform, it added.
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"The programme is expected to impact over one lakh families who are in need of liquidity for immediate household expenses. The loan will aim to supplant the incomes of hundreds of thousands of driver-partners who haven't had a steady source of income due to the nationwide lockdown," it said.
The credit shall be set off against earnings on the platform over a period upon return of normalcy in business, it added.
"‘Sahyog’ enables them to access micro-credit instantly, in their registered bank accounts, allowing drivers and their families to tide through these difficult times with much needed liquidity.
"We are committed to doing everything we can to reduce the economic burden and safeguard the interests of our driver-partners and their families through these unprecedented times," Ola spokesperson said.
Ankush Aggarwal, founder and CEO of Avail Finance said the company's platform will help Ola identify eligible driver partners as well as to manage disbursement of credit in real-time.
With the implementation of the lockdown, the government has allowed only people in essential services like healthcare, banking and media to commute. Restricted mobility has left driver-partners of cab services like Ola and Uber with no source of income.