Emergency brakes on Ola and Uber in Bengaluru as banks decide against lending to drivers
AdvertisementOwing 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.
Also read: Ola founder says government should decide if US internet giants are 'capital dumping' in India
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.
Also read: UberEATS is all set to debut in India
As per bankers, these drivers started to stop paying their EMIs after the sharp fall in their incomes, owing to
Earlier, Ola and
Popular on BI
- WhatsApp introduces the “Message Yourself” feature, working on voice status updates and more
- Live your life American Express’ Platinum way: Exceptional privileges, rewards and experiences
- I'm a 56-year-old IT worker who got laid off last year and have been unemployed ever since. I have a hunch I'm not finding work due to ageism. How do I prove it?
- Twitter financial community getting younger, smarter about investments; desire for life change a spur: Birdseye report
- Former Flipkart SVP's online shopping platform Flash raises $5.8 million in seed round
- Queer lawyer requests CJI for gender-inclusive appearance slips in courts
- Corporate demand boosts hotel demand in Q3: JLL
- Ajay Devgn's Drishyam 2 crosses Rs 150 crore mark