June 25, 2017

State Bank of India suspends car loans for Uber and Ola

Fleet of ola cabs
Image Courtesy of Ola

The bank has seized close to 300 cars for payment defaults, which reflect lower earnings by drivers amid a surge in cab numbers and a decline in incentives paid out by the aggregators.

SBI , which has total exposure of `120 crore toward cabs, had seen considerable stress in these accounts, people aware of the matter said.

“We have stopped financing vehicles under Ola and Uber (select geographies) as have we decided to take a cautious approach,” said a top SBI executive. “Suspension is temporary because we want to watch the situation for some time. There have been certain changes in regulations in many geographies and it’s prudent to see how it evolves before financing these vehicles again.”

There was no response to queries from Ola and Uber.

While suspension was implemented in larger markets like Mumbai , Delhi and Bengaluru, sources said a few disbursals continued in markets like West Bengal, Odisha and […]

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The News for the Gig Economy Staff is constantly searching the web for the latest news regarding freelancing and gig platforms to bring them to you in one handy place. All articles with this generic author have been sourced with the original location at the bottom of the piece. We encourage our readers to view the original source of all excerpts. NGE is a project of ARC Online, LLC.

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