~ In the current phase, users can apply for loans via Easypay, Paisabazaar, Tata Digital, Invoicepe, Cliniq360, Zyapaar, Indipe, Tyreplex, and Paynearby ~
As ONDC surpasses a remarkable 12 million monthly transactions in e-commerce, the network is taking a bold step forward by launching fully digital and paperless loans that can be approved in just six minutes! This new credit offering, now available through nine buyer applications (also known as Lending Service Providers) and three lenders, represents a significant milestone in ONDC Network’s ongoing mission to enhance accessibility and efficiency in credit services across India.
The initial phase of this digital lending initiative focuses on providing unsecured credit to both salaried and self-employed individuals. The buyer applications involved include Easypay, Paisabazaar, Tata Digital, Invoicepe, Cliniq360, Zyapaar, Indipe, Tyreplex, and Paynearby, while the lending partners are Aditya Birla Finance, DMI Finance, and Karnataka Bank.
To achieve the swift, fully digital loan process, the system integrates four key Digital Public Goods: Account Aggregator for data collection, Digilocker/Aadhaar for KYC, eNACH/eMandate for repayment, and Aadhaar eSign for agreement signing. This innovative approach is poised to revolutionize digital lending in India, extending crucial credit access to even the most remote and underserved areas of the country.
“This development represents a major step forward in democratizing access to credit,” said T Koshy, MD & CEO, ONDC. “By integrating multiple digital systems into a single process, we are simplifying the borrowing experience and expanding credit availability even for remote and underserved regions. This innovation not only reduces operational costs for both lenders and buyer applications but also enhances financial inclusion, fostering economic growth and opportunity across the country. This goes well with ONDC vision of inclusion as well, now extending to Financial Inclusion”
The new digital credit process is poised to make a substantial impact by delivering loans seamlessly and quickly. With the ONDC Protocol providing a standardized framework, both lenders and buyer applications can achieve greater efficiency and broader reach. Lenders simply need to adopt the ONDC Protocol to gain access to multiple distribution points. Similarly, buyer applications with the ONDC Protocol will have access to multiple lenders with a single integration.
There is a strong pipeline of buyer applications with interest in expanding this digital credit model, such as Mobikwik, Rupeeboss and Samridh.ai, and lenders such as HDFC Bank, IDFC First Bank, Faircent, Pahal Finance, Fibe, Tata Capital, Kotak Mahindra Bank, Axis Finance, FTCash and Central Bank of India.
Following the launch of unsecured loans, ONDC Network plans to introduce GST invoice financing loans by September end 2024. Subsequent products will include purchase financing for individuals and sole proprietors, as well as working capital lines for partnerships and private limited companies.
