SBI part­ners Uber for in­stant ve­hi­cle fi­nanc­ing

The Pak Banker - - COMPANIES/BOSS -

Pub­lic sec­tor len­der SBI has tieup with taxi-ag­gre­ga­tor Uber to pro­vide in­stant ve­hi­cle fi­nance to ' driver-part­ners' on the lat­ter's plat­form.

The scheme would en­cour­age skilled driv­ers to over­come liq­uid­ity crunch and ex­cess doc­u­men­ta­tion re­quire­ments to be­come an en­tre­pre­neur. The loans could be sanc­tioned in one day us­ing an in­built dig­i­tal of­fer­ing, and would be col­lat­eral free as well as carry a very com­pet­i­tive in­ter­est rate.

All loans will be cov­ered un­der the govern­ment's Prad­han Mantri Mudra Yo­jana Scheme, SBI said in a state­ment. "The on-de­mand trans­porta­tion seg­ment growth has cre­ated a whole new ecosys­tem en­abling lakhs of In­di­ans to earn liveli­hood by be­com­ing mi­cro-en­trepreneurs on such plat­forms," SBI chair­man Arundhati Bhat­tacharya said.

"In the process, it has also opened up a new world of op­por­tu­ni­ties for the bank­ing in­dus­try," she said, adding that one has to go be­yond tra­di­tional bank­ing to lev­er­age such op­por­tu­ni­ties.

SBI man­ag­ing di­rec­tor Ra­jnish Ku­mar said the new fa­cil­ity would en­able driv­ers to ap­ply for loans at the Uber Part­ner Cen­tre and get loans sanc­tioned in one day. "This is sup­ported by our dig­i­tally in­te­grated back-end sys­tem, thereby elim­i­nat­ing the long pro­cess­ing time. The part­ner­ship with Uber will also help us sim­plify the doc­u­men­ta­tion re­quire­ments thereby elim­i­nat­ing tra­di­tional fi­nan­cial state­ments like in­come tax re­turns," Ku­mar said.

Fur­ther, he said the prod­uct is in­line with SBI's fo­cus on build­ing a risk mit­i­gated port­fo­lio, which is aimed at sig­nif­i­cantly im­prov­ing the cus­tomer ex­pe­ri­ence. Uber is present across 27 cities in the coun­try, more than any other coun­try out­side the US.

"In­dia is a global mar­ket pri­or­ity for such a short span of time, we've got over 2,50,000 driver part­ners on our plat­form who have be­come mi­cro-en­trepreneurs to­day," Uber Asia Pa­cific pres­i­dent Eric Alexan­der said. The tie-up with SBI would cre­ate tens of thou­sands of mi­cro en­trepreneurs, he added.

SBI fur­ther said it is ex­plor­ing op­por­tu­ni­ties with Uber, in­clud­ing a spe­cial scheme for the army men who in­tend to drive on the Uber plat­form. Uber In­dia had part­nered with the Army Wel­fare Place­ment Or­gan­i­sa­tion (AWPO) un­der the min­istry of de­fence to help ex-ser­vice­men tran­si­tion to civil­ian life and pro­vide them with en­tre­pre­neur­ial op­por­tu­ni­ties.

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