Karnataka Bank has said that it will offer personal loans on ONDC (Open Network for Digital Commerce). This, according to a media statement, makes Karnataka Bank the first bank to offer such service.
The bank will be offering personal loans through buyer apps on the ONDC network, which will initially be available for the bank’s existing customers.
Quoting Srikrishnan H, Managing Director (MD) and Chief Executive Officer (CEO) of Karnataka Bank: “This is yet another big step in democratising credit. Karnataka Bank is proud to be the first bank to integrate into ONDC’s rails and is excited to innovate and work closely with their ecosystem, evolve products and services and contribute to build India’s digital public infrastructure.”
Sekhar Rao, Executive Director of Karnataka Bank, said, “We are excited to be an early adopter of ONDC for financial services and believe that the standardised protocols of ONDC enable great convenience in connecting lenders to multiple buyer apps, thus unlocking huge potential. Customers will now have more choices with better price discovery.”
Reiterating similar sentiments, T Koshy, MD and CEO of ONDC, said ONDC’s mission is to democratise financial services in India by leveraging technology to create networks that enable the low-cost distribution of financial products. Moreover, ONDC is building a technological environment that encourages innovation in financial products, but in a controlled and responsible manner.
“Karnataka Bank’s initiative is a perfect example of how ONDC network can empower both financial institutions and consumers, marking a significant milestone in our journey towards a more accessible and equitable financial ecosystem in India,” Koshy said.