The government backed Open Network for Digital Commerce (ONDC) has taken a significant step forward in the fintech space by launching a suite of credit offerings.
The network announced that customers using platforms such as Easypay, Paisabazaar, Tata Digital, Invoicepe, Cliniq360, Zyapaar, Indipe, Tyreplex, and Paynearby can now access fully digital and paperless loans in just six minutes.
This service is facilitated by a combination of digital lending platforms and traditional lenders.
The lending side is supported by financial institutions including Aditya Birla Finance, DMI Finance, and Karnataka Bank.
To deliver the loan digitally within minutes, the entire sanction credit process has been integrated using four digital public goods, Account Aggregator for data, Digilocker or Aadhaar for KYC, eNACH or eMandate for repayment and Aadhaar eSign for agreement signing.
In its official statement, ONDC also hinted at the upcoming inclusion of more lending service providers such as Mobikwik, Rupeeboss, and Samridh.ai.
Notably, major financial institutions like HDFC Bank, IDFC First Bank, Tata Capital, and Kotak Mahindra Bank are also preparing to join the network, further broadening the scope of available credit services.
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.
To deliver on its promise of instant loans, ONDC has integrated several public services into its process, including the Account Aggregator for data, Digilocker or Aadhaar for KYC, eNACH or eMandate for repayment, and Aadhaar eSign for agreement signing.
Looking ahead, ONDC plans to roll out GST invoice financing loans by the end of September 2024.
The network also has a roadmap for launching additional financial services, including unsecured GST-based invoice loans, purchase finance, and working capital lines.
In the insurance domain, ONDC aims to bring health, marine, motor, and life insurance products online soon.
This launch comes on the heels of ONDC’s impressive performance in July 2024, where it recorded over 12 million monthly transactions.
The network is now operational in over 611 cities, with 111 network participants.
