Tata Digital is emerging as a frontrunner in India’s push to expand access to credit through the Open Network for Digital Commerce (ONDC). Acting as one of the largest buyer platforms for financial services on ONDC, the company has already processed more than a million personal loan applications in just the past three months. It now holds the biggest share of applications, users, and disbursals on the ONDC network.
This momentum is being credited to Tata Digital’s wide consumer reach and the level of trust its brand enjoys, both of which align well with ONDC’s broader mission of building an open, inclusive, and interoperable framework for digital services.
Key Takeaways
- Tata Digital has processed over one million personal loan applications in less than three months through the ONDC network.
- It holds the largest share of applications, users, and disbursals on ONDC.
- The Tata Neu loan marketplace includes 14 lending partners, with two already integrated via ONDC.
- The platform caters to both salaried and self-employed individuals, including those new to credit.
- The entire process, from application to disbursal, is fully digital and near-instant.
Expanding the Loan Marketplace
The Tata Neu app serves as the central hub for Tata Digital’s loan marketplace, which brings together a wide mix of lending partners. At present, it features 14 lenders, two of whom are connected directly through ONDC. Having multiple partners on one platform gives customers the freedom to choose loans at competitive rates.
The offerings cover both salaried and self-employed individuals, and importantly, extend to first-time borrowers who are new to credit. The loan process is entirely digital, with instant approval and disbursal, eliminating paperwork altogether.
Gaurav Hazrati, President of Financial Services at Tata Digital, said that being part of ONDC reflects the company’s commitment to strengthening India’s digital infrastructure while also improving access to financial products. He pointed out that there has been a strong demand for gold loans in particular, which highlights the marketplace’s ability to evolve with consumer preferences. According to him, the seamless borrowing journey on Tata Neu is helping reach sections of the population that have traditionally remained underserved.
ONDC’s Acting CEO and COO, Vibhor Jain, echoed this view, explaining that the network is reshaping how Indians access credit. With just one integration, fintechs can connect to multiple lending partners and vice versa, while consumers can browse several loan options without the hassle of approaching each lender individually. By using derived data, ONDC also enables lenders to underwrite credit for people who were previously excluded, bringing more people into the formal financial system.
Together, Tata Digital and ONDC are contributing to a wider financial inclusion effort across India, where speed and accessibility are becoming as important as the availability of credit itself.
What is ONDC?
The Open Network for Digital Commerce (ONDC) is a government-backed initiative designed to create a common, interoperable platform for digital commerce across industries, from retail and food delivery to financial services. By linking buyers and sellers directly, it lowers barriers for businesses of all sizes to participate in the digital economy.
In financial services, ONDC connects lenders and borrowers in a single ecosystem, removing the need for individual integrations. This not only increases competition but also makes borrowing simpler and more transparent for consumers.
Related FAQs
Q: What is the Open Network for Digital Commerce (ONDC)?
A: ONDC is a government-supported initiative in India that provides a common, open platform for digital commerce. It allows buyers and sellers from different platforms to interact with each other. The network aims to make digital transactions and services, including financial ones, more accessible and competitive.
Q: How does Tata Digital use ONDC to provide loans?
A: Tata Digital uses its Tata Neu app as a buyer platform on the ONDC Network. This allows the company to connect with multiple lending partners through a single integration. This gives customers a wide range of loan options from various lenders on one platform, simplifying the borrowing process.
Q: Which company is Tata Digital a part of?
A: Tata Digital is a wholly owned subsidiary of Tata Sons Private Limited. It was founded in March 2019.
Q: What is the Tata Neu app?
A: Tata Neu is the main app from Tata Digital. It is a “super app” that provides a variety of services, including shopping for groceries and electronics, financial services like loans and credit cards, and travel bookings. It aims to be a single app for a consumer’s daily needs and desires.
