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Bengaluru: Hospitality chain Oyo has launched a financing facility which offers a cash-in-bank (CiB) option to its asset owners. With CiB, Oyo allows its asset owners across India to benefit from quick and collateral-free business advances to upgrade or renovate their buildings, said the company in a statement.

This is their second such initiative under the recently-launched partner engagement program -- OPEN.

“As a direct outcome of our constant engagement with the asset owner partners under the aegis of OPEN - OYO Partner Engagement Network, we realized the need for providing a quick and hassle-free financing facility to cater to their expansion and renovation needs," said Aditya Ghosh, CEO for Oyo India and South Asia. “We believe this facility has the potential to be a game-changer for our asset owners and elevate their relationship with us."

OPEN, or Oyo Partner Engagement Network, was launched in April as a yearlong program with several benefits for asset owners. Many of the asset owners asked the firm to provide financing for expansions apart from the existing arrangement of securing loans from banks and NBFCs at discounted rates.

All the new buildings on boarded by Oyo which are less than two months old and all the existing buildings of Oyo are eligible to apply for the cash in bank facility. A CIB calculator will allow asset owners to enter the building code and the business advance amount required along with the tenure of the advance.

This will tell them whether the building is eligible for the advance along with the charges applicable and the maximum amount eligible for that building. Oyo will be charging a minimal service fee to the asset owner over and above the monthly installments to repay the principal amount.

Oyo claims to have over 9000 hotels across 260 cities in India.

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