ONDC To Offer Paperless Loans In Just 6 Minutes: All You Need To Know
ONDC is in advanced discussions with additional buyer applications, including MobiKwik, Rupeeboss, and Samridh.ai.
Open Network for Digital Commerce (ONDC), a government-backed platform aimed at transforming India's e-commerce industry, has officially entered the financial services sector with the launch of a fully digital, paperless credit service. This innovative solution promises to process working capital loans in just six minutes, marking a significant milestone in ONDC's efforts to broaden its offerings in the financial services space.
Learn about the ONDC Financial Services!
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ONDC Partners With Several Institutions
ONDC has forged partnerships with nine buyer applications and three financial institutions to roll out this new service. The buyer applications, which serve as Lending Service Providers, include Easypay, Paisabazaar, Tata Digital, Invoicepe, Cliniq360, Zyapaar, Indipe, Tyreplex, and Paynearby. The lending partners onboarded for this initiative are Aditya Birla Finance, DMI Finance, and Karnataka Bank.
ONDC is in advanced discussions with additional buyer applications, including MobiKwik, Rupeeboss, and Samridh.ai. The platform is also engaging with a range of potential lenders such as HDFC Bank, IDFC First Bank, Faircent, and Kotak Mahindra Bank, among others, to further extend its digital credit model nationwide.
How Does The Borrowing Process Work
T Koshy, Managing Director and CEO of ONDC, emphasised the platform's role in streamlining the borrowing process.
By integrating various digital platforms into a single, cohesive system, ONDC aims to make credit more accessible, particularly for underserved regions. This approach not only lowers costs for lenders and borrowers but also enhances financial inclusion, contributing to broader economic growth across the country.
Since its launch in 2022, ONDC has seen a remarkable increase in transaction volume, surpassing 68 million transactions according to the Economic Survey 2024.
In June 2024, ONDC reported a 12 per cent month-on-month increase, reaching 9.95 million transactions. July saw this number climb further to 12 million, indicating strong market adoption of the platform's services.
In its drive to offer a comprehensive suite of financial products, ONDC is preparing to introduce GST invoice financing loans by the end of September. The platform is also developing new offerings like purchase financing for individuals and sole proprietors, as well as working capital lines tailored for partnerships and private limited companies.
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