OYO — South Asia’s largest hotel chain — on Wednesday inked an MoU with two banking majors — State Bank of India and Bank of Baroda for extending support to budget hotels and create jobs across levels.
Signed under the aegis of Pradhan Mantri Mudra Yojana, the MoU will enable financial support for OYO’s existing and potential hotel partners for fuelling transformation and standardisation at their properties.
The opportunity will also allow OYO to spearhead the creation of thousands of jobs in Tier-II and Tier-III cities by nurturing micro-entrepreneurs in the hospitality sector.
As a step towards enabling convenient financing and collateral-free loans for its asset partners through banks and NBFCs, OYO has also established an in-house Fintech division.
These loans will help individuals hailing from Tier II and III cities to be self-employed and run their own budget assets with OYO’s diverse brand portfolio allowing them to become a partner through OYO Home (two rooms and above) or OYO Rooms under franchise or manchise model.
The company is further utilising machine learning models and data analytics in this process and all these facets will come together to strengthen the country’s micro-entrepreneurship ecosystem.
Speaking on the development, Jayant Chauhan, SVP - Fintech, OYO, said: “We are thrilled to join hands with banking powerhouses - State Bank of India and Bank of Baroda and achieve the mission of job creation in the country by enabling the youth to emerge as micro-entrepreneurs and run their own successful businesses."
"These MoUs will help us in shortening the demand-supply gap of quality accommodation by offering hoteliers a platform to transform their property and enhance the business by creating beautiful living spaces,'' he said.
"In the past, partner hotels have witnessed an increase in revenue and occupancy levels after becoming a part of OYO’s chain of hotels. On average, in business cities, we have been delivering 80%+ occupancy,'' he said.