If you find yourself in urgent need of a loan and are tired of repeatedly visiting banks, there’s no need to worry anymore. A government initiative is now offering loans in just 6 minutes! We’re talking about the Open Network for Digital Commerce (ONDC), which has initiated this rapid loan disbursement process from Thursday onwards.
The Process: Quick and Paperless
The entire loan application process is completely paperless, allowing you to apply online from the comfort of your home. ONDC’s plan aims to facilitate loans for mutual funds, insurance products, credit cards, and even for students and farmers. With an increasing demand for speedy financial assistance, this innovation represents a significant shift in how loans are accessed.
How to Apply for a Loan
To secure a loan, you need to apply online. Certain essential documents and information are required for this process, including:
- Account aggregator data
- KYC verification via DigiLocker or Aadhaar
- Account connection for loan repayment through e-NACH
- E-signature using Aadhaar for agreement creation
If you possess all these documents, you can obtain a loan from anywhere in the country without stepping out of your home.
Diverse Loan Options Available
Several platforms like EasyPay, PaisaBazaar, Tata Digital, InvoicePay, Clinic360, Zyapar, IndiePay, Tireplex, and PenierBuy allow you to secure loans from financial institutions such as Aditya Birla Finance, DMI Finance, and Karnataka Bank. Up to this point, these nine companies have applied for registration with ONDC.
Ongoing Collaborations
Furthermore, discussions are underway for platform integration with other institutions such as Mobikwik, Rupyboss, Samriddh.ai, HDFC Bank, IDFC First Bank, Faircent, Pehal Finance, Fibe, Tata Capital, Kotak Mahindra Bank, Axis Finance, FT Cash, and Central Bank of India. The company is excited about developing personal loan offerings and expanding into the mutual fund and insurance sectors in the next two months.
Future Plans: GST Invoice Loans
By the end of September, ONDC plans to provide loans based on GST invoices, which will greatly benefit small business owners. The strategy involves extending loan offerings to farmers as well as introducing credit card services. The CEO mentioned that with the addition of these features, daily transactions on their platform could reach up to 10 million, with an expectation of 40 million transactions each month by the end of the financial year.
The Bottom Line
ONDC’s initiative to offer loans in just 6 minutes not only simplifies the borrowing process but also opens up a myriad of financial opportunities for diverse segments of society. This pioneering step towards a more efficient and accessible financial ecosystem could revolutionize the way individuals and businesses access funds in India.
