How OCEN can be the next UPI revolution in India!

 

It's no secret that India's digital infrastructure has played a pivotal role in our country's exponential growth over the past few years. With innovations like UPI transforming the payment landscape, we've witnessed a remarkable shift towards digital transactions.

But have you ever wondered about the stark contrast between big businesses effortlessly securing massive loans while small businesses struggling to get even a fraction of that support? It's time for a change, and the Indian government has a solution: OCEN, the Open Credit Enablement Network.

Imagine you're a shop owner facing a sudden liquidity crunch of 90 thousand rupees to cover your operational expenses and employee salaries. Without collateral, securing a loan might seem like an insurmountable challenge, leaving you feeling helpless.

But here's the exciting part: With OCEN, you can now obtain a loan without the traditional hurdles. No more endless paperwork or collateral requirements. It may sound too good to be true, but trust me, it's real.

Thanks to OCEN, you can access loans with just a few taps on your smartphone, any time of the day, from anywhere in the country. It's a game-changer for small businesses seeking quick and hassle-free financing. Let us take a step back and try to solve the enigma.

OCEN acts as a standardized middle layer, connecting lenders with digital platforms through well-defined APIs. It's designed to democratize the small-ticket credit market and promote financial inclusion.

In fact, OCEN has already processed loans ranging from as little as INR 160 to as high as INR 10 Lakhs, with an average loan size of INR 40,000. The best part? You can receive loans of up to Rs. 10 lakh within minutes of submitting your request.

Now, let's talk about the significance of MSMEs in our economy. These micro and small enterprises contribute a whopping 31% to our GDP, employ 124 million people, and account for 45% of our exports.

However  a massive credit gap of $300-400 billion remains, with only 10% of MSMEs currently receiving loans. This is where OCEN steps in, aiming to bridge that gap and empower small businesses to thrive.

Traditional lenders often shy away from this sector due to the high costs associated with loan processing, obtaining, underwriting, and servicing. As a result, many MSMEs turn to informal lending despite the sky-high interest rates. These informal lenders provide the speed, reliability, and flexibility that small businesses need. But OCEN can change the game.

OCEN typically has four pillars as its foundation:

1. Increased access to credit for everyone.
2. A simplified and hassle-free loan application process,
3. Enhanced data privacy and security,
4. Greater customer experience and satisfaction.

It operates with a three-layer model that ensures a seamless loan completion process for micro and small businesses in India:

1. Identification Layer: Aadhar and Digilocker play a pivotal role in sharing the company's documents, tax filing history, and credit information. Lenders can easily access revenue and profit details with just a click.
2. Payment Layer: Once loans are approved, funds are deposited directly into the customer's account. Even loan repayments can be conveniently made in installments using UPI.
3. Data Layer: Data security is a top priority. Customer information is shared with account aggregators only with explicit permission, ensuring privacy and protection.

With its focus on increased access to credit, a simplified application process, enhanced data privacy, and a superior customer experience, OCEN has the potential to create an environment conducive to affordable and accessible lending for micro and small enterprises. This will not only fuel economic growth but also foster entrepreneurship, innovation, and job creation across India.

So, get ready for a transformation in MSME lending. OCEN is here to revolutionize the game and provide small businesses with the support they deserve.

Let's embrace this opportunity to build a thriving ecosystem that empowers entrepreneurs, drives economic progress, and transforms lives. Together, we can shape a brighter future for India's small business landscape with OCEN leading the way!