A drop in the OCEN: Bold credit project has a scale problem

A drop in the OCEN: Bold credit project has a scale problem

author-image

Naina Sood

1 reads
author-image

Naina Sood

1 reads

Open Credit Enablement Network is meant to be the ‘UPI of lending’ for small businesses. In 2 years since launch, it has won many partners, from banks to fintechs. But for mass adoption, it needs a push from a large financial institution

January 10, 2023

6 MINS READ

Large parts of India’s economy rest on the shoulders of small businesses, and yet, they are deprived of the lifeblood that is capital. So much so that this credit gap is thought to be $330 billion, the size of some countries’ GDP. 

Over two years ago, in July 2020, policymakers launched an effort to do well by the segment that uppity financial institutions ignored. The Open Credit Enablement Network, or OCEN, is a government-supported tech ecosystem where traders, shopkeepers or any minor business operator can get a loan after a quick basic check. 

OCEN, pronounced o-ken, is designed to be the “UPI of lending”, so disbursals by participating fintechs, NBFCs and banks are almost instantaneous. It’s a notable shift from the traditional process that subjects applicants to endless scrutiny. 

share

Share this read

bookmarklike
like
bookmark
share
share-button
like-button
share-button

For subscribers only

Premium Reads

>>

View More >>

Deeply reported and objective news on the country´s fastest-growing companies and the people behind them.