Cholamandalam Investment and Finance Company Ltd (CHOLA), the financial services arm of the Murugappa Group, has announced their association with Ola, India's leading mobile app for personal transportation to offer car loans to drivers on Ola's platform, with an option of daily repayment scheme as against the current practice of an EMI.
Ola launched the "Pragati" programme for its drivers in February 2015. The programme has already identified that daily EMIs are better suited for driver entrepreneurs, who earn their revenue on a daily basis. They will have higher comfort in paying off the loan daily like any other expense rather than paying it monthly. Ola on its part had set up a fund of Rs.100 cr to enable drivers to buy their own cars and to transform into driver entrepreneurs. Over 15,000 drivers, across the country, have already benefitted from this program by gaining access to benefit from the ecosystem. Through this programme and Ola's tie up with Chola, Ola Pragati enables drivers to take loan at competitive rates and repay a part of their loan on a daily basis.
Chola has customized its services to cater better to this target group. It provides an array of benefits ranging from quick loan approval and easier documentation. With this tie up, Ola will share daily revenue and payment details of drivers on real time basis. This initiative enables Chola to encourage entrepreneurship amongst drivers and help them to enter a better life.
Speaking about the association, Mr. Vellayan Subbiah, Managing Director - Cholamandalam Investment and Finance Company Ltd said, "At Chola, we believe in developing new frontiers for our customers to enter a better life. 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. The usage of Ola's technology platform will smoothen the repayment process."
According to Ravi Teja, Business Head- Tamil Nadu at Ola, "Ola focuses on nurturing micro entrepreneurship amongst the drivers' ecosystem. This Ola Pragati program with Chola will enable drivers to own a car and turn entrepreneurs with attractive repayment option that is better suited for them. 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. Drivers will now stand to benefit from Ola's technology and have increased access to capital and revenues that will help them grow faster."
The entry of multiple cab aggregators in the country has given the travel and transport industry a whole new dimension and support from NBFC's in this sector and this initiative will forever change the way entrepreneurship is viewed by cab drivers.
Shares of Cholamandalam Investment and Finance Company Ltd was last trading in BSE at Rs.638 as compared to the previous close of Rs. 622.3. The total number of shares traded during the day was 7666 in over 286 trades.
The stock hit an intraday high of Rs. 645 and intraday low of 620.25. The net turnover during the day was Rs. 4832124.