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For a long time, searching for a loan or other financial product has always been restricted or even centralised. There was no smooth integration between the various platforms, so the borrowers had to run from one lender to another with lots of documents in hand. 

Everybody who has ever searched for loans from one lender to another knows how time-consuming a process this can be. But finally, it is different today. ONDC finance protocols are breaking down the walls of limitations and bridging the gaps between different lenders. 

Following groceries, food, fashion and electronics segments, the government-backed ONDC platform has gradually started offering a plethora of financial services. These services include such as loans for personal as well as SMBs, insurance—car, health, marine—and mutual funds among others.

This blog will therefore highlight how lending on ONDC is revolutionising digital finance and why this is important.

What is ONDC?

ONDC is a section 8 company that has been formed by the Quality Council of India and Protean eGov Technologies Limited. It was initiated by DPIIT as open specifications that employ open network protocols to connect various network players within the ONDC ecosystem. This platform allows many financial institutions to be linked together, hence enabling consumers to easily access finance on ONDC.

The Benefits of Lending Options on ONDC

Here is how consumers can benefit from the lending option on ONDC: 

1. Accessibility and Convenience

Lending on ONDC is highly accessible. Consumers can apply for loans through the platform without visiting a bank. This is particularly beneficial for those living in remote areas where access to traditional banking services might be limited. The convenience of digital financial services on ONDC means that you can manage your finances from your smartphone or computer.

2. Diverse Lending Options

As stated above, ONDC provides a list of loans according to the borrower’s needs and necessities. Whether you are looking for personal loans, business loans, or microloans, ONDC has everything that you need. The availability of so many lending products means that everyone can find a suitable lending product for them.

3. Competitive Interest Rates

Since multiple lenders are pooled together in ONDC, consumers can access credit facilities at reasonable interest rates. It gives information on the loan market and with its help, one can find the most suitable offer. This puts pressure on the interest costs and thus borrowing becomes cheaper in this environment.

4. Transparent Processes

Transparency is one of the main benefits of lending on ONDC. There is clarity on the type of loan offered, its terms, and conditions, its interest rates, and repayment period. Such transparency enables a consumer to know what he or she is paying for and eliminates any disguised charges or surprises.

5. Speed and Efficiency

Applying for a loan through ONDC is fast and efficient. The digital nature of the platform means that loan approvals can happen quickly, sometimes within hours. It is much more effective than conventional loan applications, which may take a few days or even weeks to process.

6. Link with Other Financial Service

Lending on ONDC is not an isolated service. The platform will integrate with other digital financial services, including insurance on ONDC, mutual funds on ONDC, etc. This means you can manage your loans, savings, and insurance all in one place. This integration makes finances more manageable and, at the same time, improves the overall experience for users.


The lending options on ONDC offer numerous benefits to consumers. By leveraging open finance platforms and digital financial services, ONDC provides a comprehensive and user-friendly financial experience. Whether you are looking for a personal loan or exploring other financial services, ONDC has something to offer.

- Story by Kakoli Laha

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How does lending option in ONDC benefit consumers?
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