Public sector lender SBI has tied up with taxi-aggregator Uber to provide instant vehicle finance to ‘driver-partners’ on the latter’s platform. The scheme would encourage skilled drivers to overcome liquidity crunch and excess documentation requirements to become an entrepreneur. All loans will be covered under the government’s Pradhan Mantri Mudra Yojana Scheme, SBI said in a statement.

SBI Managing Director Rajnish Kumar said the new facility would enable drivers to apply for loans at the Uber Partner Centre and get loans sanctioned in one day.

“This is supported by our digitally integrated back-end system, thereby eliminating the long processing time. The partnership with Uber will also help us simplify the documentation requirements thereby eliminating traditional financial statements like income tax returns,” Mr. Kumar said.

Uber is present across 27 cities in the country, more than any other country outside the US. The tie-up with SBI would create tens of thousands of micro entrepreneurs. SBI further said it is exploring opportunities with Uber, including a special scheme for the army men who intend to drive on the Uber platform.

Uber India had partnered with the Army Welfare Placement Organisation (AWPO) under the Ministry of Defence to help ex-servicemen transition to civilian life and provide them with entrepreneurial opportunities.