ONDC integrates nine LSPs, three lenders to extend credit to customers

The buyer applications include Easypay, Paisabazaar, Tata Digital, Invoicepe, Cliniq360, Zyapaar, Indipe, Tyreplex, and Paynearby

The Open Network for Digital Commerce (ONDC), a government backed e-commerce platform, currently has nine lending service providers (LSPs) and three lenders live to extend loans to customers.

The network claims to process loans within six minutes on the back of an integration of account aggregator for data, Digilocker or Aadhaar for KYC, eNACH or eMandate for repayment and Aadhaar eSign for agreement signing.

The LSPs include Easypay, Paisabazaar, Tata Digital, Invoicepe, Cliniq360, Zyapaar, Indipe, Tyreplex and Paynearby. And the lenders include Aditya Birla Finance, DMI Finance and Karnataka Bank.

Some other buyer applications and lenders would 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 salaries and self-employed individuals as one of the initial offerings. 

“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 goes well with ONDC vision of inclusion as well, 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. It provides access to multiple distribution points to 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.