You can now avail loans in 6 minutes on ONDC
The Open Network for Digital Commerce (ONDC) has ventured into the financial services market with a fully digital and paperless credit offering. This new service, launched today, promises to process working capital loans in just six minutes. The move is part of ONDC's broader strategy to expand into interoperable financial services. ONDC is a government-backed initiative aimed at revolutionizing India's e-commerce landscape.
ONGC collaborates with nine buyer applications and three lenders
ONDC has successfully integrated nine buyer applications, also known as Lending Service Providers, and three lenders into its system. The buyer applications include Easypay, Paisabazaar, Tata Digital, Invoicepe, Cliniq360, Zyapaar, Indipe, Tyreplex and Paynearby. The lenders are Aditya Birla Finance, DMI Finance and Karnataka Bank.
ONGC's digital integration aims to simplify borrowing experience
ONDC's managing director and chief executive, T Koshy, highlighted the benefits of their approach. He said that by integrating multiple digital systems into a single process, they are simplifying the borrowing experience and expanding credit availability even for remote and underserved regions. This innovation not only reduces costs for both lenders and buyer applications but also promotes financial inclusion, fostering economic growth and opportunity across India.
ONGC in talks with other buyer applications and lenders
ONDC is currently in discussions with other buyer applications such as MobiKwik, Rupeeboss, and Samridh.ai. They are also engaging with lenders like HDFC Bank, IDFC First Bank, Faircent, Pahal Finance, Fibe, Tata Capital, Kotak Mahindra Bank, Axis Finance, FTCash and Central Bank of India. These talks aim to further expand this digital credit model across the country.
ONGC plans to introduce GST invoice financing loans
ONDC has plans to launch GST invoice financing loans by the end of September. The company is also developing a range of other products, including purchase financing for individuals and sole proprietors, as well as working capital lines for partnerships and private limited companies. This is part of their strategy to offer a comprehensive suite of financial services.
ONGC's transaction volume witnesses significant growth
Since its inception in 2022, transactions on the ONDC have surged past 68 million, as per the Economic Survey 2024. As of June this year, it saw a 12% month-on-month growth in transactions to 9.95 million. In July alone, ONDC recorded a total of 12 million transactions, indicating a strong market response to its services.
