Financial services company Cholamandalam Investment and Finance on Monday said it has joined hands with mobile app-based taxi aggregator, Ola, to offer car loans to the latter's drivers with an option of daily repayment scheme instead of a monthly payment.
Under this tie-up, Ola will share daily revenue and payment details of drivers on real time basis, a company release said.
"With this tie-up, we look forward to support those drivers who aspire to own their vehicle and payback through their daily earnings.
This initiative will ensure better financial discipline amongst drivers," Chola's managing director Vellayan Subbiah said.
The usage of Ola's technology platform will smoothen the repayment process, he added.
"This initiative aims to open up lucrative earning opportunities for a lot of drivers at multiple levels, thus helping them improve their socio-economic status," Ola's business head (Tamil Nadu) said.
In February this year, Ola along with SBI had launched a programme -- 'Pragati'-- to offer loans to its drivers to buy cars under a daily repayment scheme as against the practise of equated monthly instalment (EMI). Ola had set up a fund of Rs 100 crore for the programme.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
