Loan in 6 minutes: ONDC Launches Digital Credit Services for Instant Loans, Know how to apply
The Open Network for Digital Commerce (ONDC), a government initiative, has recently enhanced its fintech capabilities by introducing digital credit offerings. This new feature allows customers to access fully digital and paperless loans within just six minutes. ONDC is a network that allows users to purchase products from various platforms on one single place such as you can do shopping from flipkart, myntra on a single app. Now, ONDC has launched a new product – loan in 6 minutes. You can apply and get loan in 6 minutes via any ONDC app.
How It Works
Customers using platforms like Easypay, Paisabazaar, Tata Digital, Invoicepe, Cliniq360, Zyapaar, Indipe, Tyreplex, and Paynearby can now apply for loans through ONDC. The loans are provided by nine lending services providers and facilitated by well-known lenders such as Aditya Birla Finance, DMI Finance, and Karnataka Bank.
Moreover, ONDC has plans to include additional lending services and banks in the future. Providers like Mobikwik, Rupeeboss, and Samridh.ai, as well as lenders including HDFC Bank, IDFC First Bank, Faircent, Pahal Finance, Fibe, Tata Capital, Kotak Mahindra Bank, Axis Finance, FTCash, and Central Bank of India, are expected to join the network soon.
Simplifying the Borrowing Experience
According to ONDC’s Managing Director and CEO, T. Koshy, this new service simplifies the borrowing process by integrating various digital systems into a single platform. This integration not only reduces operational costs for lenders and borrowers but also enhances financial inclusion, making credit accessible even in remote and underserved areas.
Key Features of the Loan Process
The ONDC network has streamlined the loan process with the following public services:
- Account Aggregator for data collection
- Digilocker or Aadhaar for Know Your Customer (KYC) verification
- eNACH or eMandate for loan repayment
- Aadhaar eSign for signing loan agreements
How to get Loan
Open Network for Digital Commerce (ONDC) is a government-backed platform that offers paperless, digital loans in six minutes. ONDC’s loans are available through its buyer apps and can be used to purchase products and services like travel tickets, delivery services, and more. You can use any ONDC app to avail loan facilities.
Future Plans
Following the launch of these loans, ONDC is planning to introduce GST invoice financing loans by the end of September 2024. The network has been working on expanding its financial services since September of the previous year. Upcoming services include unsecured GST-based invoice loans, purchase finance, and working capital lines. Additionally, ONDC is looking to roll out online insurance options, including health, marine, motor, and life insurance.
In a recent update, ONDC’s Chief Business Officer, Shireesh Joshi, mentioned that the network has completed its test phase and is now ready to onboard more credit providers. He noted that ONDC is targeting a specific base number of providers before making the service available to the wider public.
Performance and Reach
In July, ONDC achieved over 12 million monthly transactions in e-commerce. Of these, approximately 4.4 million were related to mobility, while the remaining 7.6 million were from other domains. The network is currently operational in over 611 cities and has 111 network participants.
ONDC’s new credit offerings mark a significant step in advancing digital finance and expanding access to financial services across the country.
