The bank has tied up with the taxi aggregating company and will provide these loans in one day.
The country's largest public sector lender, State Bank of India, has tied up with app-based taxi aggregator Uber to provide its drivers with hassle-free, low-cost and collateral-free vehicle loans, the bank said in a statement.
According to a release, the bank will help drivers get financing for vehicles at a low cost through an in-built digital offering which will make the process quicker and eliminate the need for excessive documentation.
SBI's Managing Director, National Banking Group Rajnish Kumar said that these loans will get sanctioned in a day. He explained that the service will be made available through the bank's "digitally integrated backend system, thereby eliminating the long processing time".
The bank has said that these loans will be collateral free and will also get a competitive interest rate.
To provide additional security, all the loans will be covered under the Pradhan Mantra Mudra Yojana Scheme offered by the government.
To avail these loans, drivers can apply at the Uber Partner Centre. "The product is also in line with our focus on building a risk mitigated portfolio, which is aimed at significantly improving the customer experience," Kumar said.
Commenting on the development, SBI Chairman Arundhati Bhattacharya said, "The on-demand transportation segment growth has created a whole new ecosystem enabling lakhs of Indians to earn livelihood by becoming micro-entrepreneurs on such platforms."
"In the process, it has also opened up a new world of opportunities for the banking industry, not just in the on-demand transportation loan space but also in other areas like payment wallet, consumer finance etc. It is now upon us to leverage these opportunities. Doing so requires us to think and go beyond the traditional banking products and delivery services," Bhattacharya said.
"India is a global market priority for us; the robust growth we've seen in India in just about two years is phenomenal. In such a short span of time, we've got over 250,000 driver partners on our platform who have become micro-entrepreneurs today.
We're excited to create tens of thousands of micro-entrepreneurs by enabling them to start their careers on the Uber platform, by owning their cars, through this program with SBI.” said Eric Alexander, President of Business, Asia Pacific at Uber.
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