Emergency brakes on Ola and Uber in Bengaluru as banks decide against lending to drivers
Owing to the increasing number of defaults on vehicle loans by Bengaluru-based drivers of ride-hailing apps like
Bengaluru is the largest market in India for these cab-based aggregators.
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After almost one-fifth of its loan book in the city registered defaults, the State Bank of India (
"The total default amounts to Rs 60 crore in the city," said Gopal Krishan Kansal, chief general manager, small and medium enterprise, at SBI (Mumbai). It’s been a fee months that SBI decided to stop lending to Ola drivers in Bengaluru.
"We (still) disburse loans to Ola vehicles in Hyderabad and Chennai (where) the default rate is almost 7%," Kansal told ET.
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As per bankers, these drivers started to stop paying their EMIs after the sharp fall in their incomes, owing to
Earlier, Ola and
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