Bangalore-based Ola Cabs has tied up with India's largest lender State Bank of India (SBI) to extend vehicle financing for its drivers under a new programme called Ola Pragati. Under the programme, SBI will offer car loans to drivers on Ola’s platform with a daily repayment scheme as against the current practice of an EMI. Drivers on the Ola platform will also benefit from lower down payment of just 10%, 24-hour loan approval from SBI and easier documentation. SBI says that it will provide loans at an average rate of 13% and the daily repayment amounts would be about Rs 500- 600. It's also reported that cars financed by SBI will have GPS for enhanced safety. .@Olacabs launches 'Ola Pragati' in assoc. W/ SBI to offer a first-of-its-kind daily repayment program for its drivers. — Abhash Kumar (@AabhashK) February 27, 2015 It's also worth noting that SBI has one of the largest car loan portfolios in the country and reported a loan book of Rs 30,701 crore for the quarter ended December 2014, up 10.84% y-o-y (pdf). Olacabs had initiated a similar program to fund drivers, but out of its own pocket, in partnership with Milaap. The program involved sending a ‘message’ to the driver on Milaap’s platform which would contribute Rs.100 towards buying a new car. That campaign is however, now closed. Interestingly, VP of operation at Ola Pranay Jivrajka told ET that it has been helping drivers get cheaper rate on new cars and insurance over the last 2…
