Karnataka Bank Becomes First to Offer Personal Loans on ONDC Network

Karnataka Bank Becomes First to Offer Personal Loans on ONDC Network

Mangalore Today News Network

Mangaluru, August 30, 2024: Karnataka Bank, headquartered in Mangaluru, has become the first bank to offer personal loans through the Open Network for Digital Commerce (ONDC), a government-backed initiative aimed at democratizing credit in India.

Initially, the bank will provide personal loans to its existing customers through buyer applications on the ONDC Network, with plans to extend this service to new customers in the future.

Srikrishnan H, Managing Director & CEO of Karnataka Bank, emphasized the bank’s commitment to innovation, stating, “This is yet another big step in democratizing 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 building India’s Digital Public Infrastructure.”

Sekhar Rao, Executive Director of Karnataka Bank, highlighted the potential benefits of the new service, saying, “We are excited to be an early adopter of ONDC for financial services. The standardized protocols of ONDC enable great convenience in connecting lenders to multiple buyer applications, thus unlocking huge potential. Customers will now have more choices with better price discovery.”

T Koshy, Managing Director & CEO of ONDC, also praised the initiative, stating, “ONDC’s mission is to democratize financial services in India by leveraging technology to create networks that enable the low-cost distribution of financial products. Karnataka Bank’s initiative is a perfect example of how the 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.”

This pioneering move by Karnataka Bank marks a significant development in the digital transformation of financial services in India, setting a new benchmark for innovation in the banking sector.