ONDC Expands Fintech Footprint with 6-Minute Digital Loans

With the introduction of credit offers, the state-backed network Open Network for Digital Commerce (ONDC) has strengthened its fintech presence.

The network claimed in a statement that users can obtain digital and paperless loans in as little as six minutes by interacting with the network through Easypay, Paisabazaar, Tata Digital, Invoicepe, Cliniq360, Zyapaar, Indipe, Tyreplex, and Paynearby.

The nine lending service providers stated above will supply the loans, which will be made possible by lenders like Aditya Birla Finance, DMI Finance, and Karnataka Bank. 

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In addition, the network says that lenders like HDFC Bank, IDFC First Bank, Faircent, Pahal Finance, Fibe, Tata Capital, Kotak Mahindra Bank, Axis Finance, FTCash, and the Central Bank of India are planning to participate in the lending services, along with Mobikwik, Rupeeboss, and Samridh.ai.

According to T Koshy, MD and CEO of ONDC, “We are streamlining the loan application process and increasing credit availability, especially for isolated and underprivileged areas, by combining several digital technologies into a unified procedure. This innovation not only lowers operating costs for lenders and buyer applications, but it also improves financial inclusion, fostering economic growth and opportunity across the country.”

The ONDC has included the following public services into its workflow to provide the loans in minutes service:

• Data Aggregator Account
• For KYC, use Digilocker or Aadhaar;
• for payback, use eNACH or eMandate; and
• for agreement signing, use Adhaar eSign.

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By the end of September 2024, ONDC Network intends to issue GST invoice financing loans in addition to these current ones. Since September of last year, ONDC has been planning to launch new financial services for its network users.

The next in line to go operational, according to its website, are working capital lines, purchase financing, and unsecured GST-based invoice loans. The network intends to offer life, health, auto, and marine insurance online soon.

This occurred more than thirty days after Shireesh Joshi, the CBO of ONDC, informed Inc42 that the network had outlined the process for launching the credit offer. After completing the test phase, we are extending an invitation to additional credit and interest providers to join us and begin conducting business, indicating that the network is prepared. Before making the service available to the general public, we currently have a goal base number that we want to reach,” he stated. 

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In July, ONDC achieved a milestone of 12 million monthly e-commerce transactions. The mobility domain accounted for almost 4.4 million of the orders registered in July, with the non-mobility domain providing the remaining 7.6 million. It also states that 111 network users and over 611 cities are online.