The Open Network for Digital Commerce (ONDC) has integrated nine lending service providers (LSPs) and three lenders to extend credit to customers after the network rolled out the service this year.
The buyer applications include Easypay, Paisabazaar, Tata Digital, Invoicepe, Cliniq360, Zyapaar, Indipe, Tyreplex, and Paynearby.
The lenders include Aditya Birla Finance, DMI Finance, and Karnataka Bank.
Other buyer applications and lenders will be on the network soon.
“There is a strong pipeline of buyer applications with interest in expanding this digital credit model, such as Mobikwik, Rupeeboss, and Samridh.ai, and lenders such as HDFC Bank, IDFC First Bank, Faircent, Pahal Finance, Fibe, Tata Capital, Kotak Mahindra Bank, Axis Finance, FTCash, and Central Bank of India,” ONDC said in a statement.
The network will have unsecured credit for salaried and self-employed individuals as one of the initial offerings.
The network claims to process loans within six minutes, supported by an integration of Account Aggregator for data, Digilocker or Aadhaar for KYC, eNACH or eMandate for repayment, and Aadhaar eSign for agreement signing.
“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. This aligns well with ONDC’s vision of inclusion, now extending to financial inclusion,” said T Koshy, managing director and chief executive officer (CEO), ONDC.
The ONDC protocol provides a standardised framework to lenders and buyer applications, offering access to multiple distribution points for lenders.
The open network plans to introduce goods and services tax (GST) invoice financing by the end of September.
“Subsequent products will include purchase financing for individuals and sole proprietors, as well as working capital lines for partnerships and private limited companies,” the open network added.
First Published: Aug 22 2024 | 7:03 PM IST