The ONDC network is gearing up to offer financial services like GST-based loans for MSMEs, Insurance products, Unsecured Personal Loans, and even services to invest in mutual funds.
Key Highlights
- 4 segments of financial services to be offered on the network.
- GST-based loans and Unsecured personal loans to be offered in the credit segment.
- Insurance products will soon be offered on ONDC with IRDAI registered brokers being allowed to join as buyer network participants.
- One would soon be able to invest in mutual funds through ONDC.
The Open Network for Digital Commerce (ONDC) is all set to incorporate financial services in its basket of offerings.
According to sources in the industry, the network will soon provide credit products, insurance products, investment services, and additional products like Gift Cards.
Within the credit products, the network will target both individuals as well as businesses functioning as sellers on ONDC.
As it makes its presence felt in the food delivery and the mobility segment, the network will soon venture into the insurance space as well with IRDAI-registered insurers functioning as seller apps on the network.
Which Financial Services will be available on ONDC?
The ONDC network would offer 4 types of financial services- Credit Products, Insurance Products, Investment Services, and additional products like Gift Cards.
Credit Products
In the credit segment, the government-backed network would offer GST-based financing to MSMEs functioning on the network as sellers, and unsecured business loans to individuals.
To facilitate loans on the network, it will allow Loan Service Providers (LSPs) to join as buyer apps and Account Aggregators as both Buyer Network Participants and Seller Network Participants.
Insurance Products
Three types of insurance products would soon be offered on the Open Network for Digital Commerce-
Third-Party Motor Insurance, Health Insurance, and Marine Insurance.
To provide Insurance on the network, IRDAI registered brokers, web aggregators, or corporate agents would be allowed to join as buyer apps.
Investment Products
An individual could soon be able to invest in mutual funds through ONDC with the AMFI-certified distributors to function as buyer network participants.
On the other hand, a SEBI-regulated fund would be allowed to function as a seller app.
Additional Products
The network would also offer additional financial services like prepaid vouchers like Gift Cards.
The ONDC had earlier launched a network-wide Gift Card for corporate gifting with a maximum voucher amount of INR 10,000.
