Everything You Should Know About OCEN

23rd December 2022

What is OCEN?

OCEN (Open Credit Enablement Network) is a decentralized credit network that aims to provide a platform for connecting credit providers and borrowers in a transparent and secure manner. With OCEN, borrowers can access a range of credit products from different lenders, and lenders can offer their products to a wider pool of borrowers. The goal of OCEN is to create a more efficient and accessible credit market that is free from intermediaries and barriers to entry.

It is a set of APIs that allows governments, businesses, start-ups and developers to utilize a unique digital infrastructure to solve India's problems towards presence-less, paperless, and cashless service delivery.

In 2020, IndiaStack launched OCEN as its major part that aims to transform the process of credit distribution. They introduced new touchpoints which empowers various digital platforms, which holds crucial importance in the lending value chain. 

Some of the key components of IndiaStack include:

1. eKYC (electronic Know Your Customer): 

Allows for the verification of identity documents such as aadhaar cards, PAN cards, and voter ID cards online.

2. eSign:

Allows for the electronic signing of documents, eliminating the need for physical signatures.

3. UPI (Unified Payment Interface):

A real-time payment system that allows for the instant transfer of funds between bank accounts.

4. DigiLocker: 

A digital locker that allows users to store, share, and verify documents electronically.

Advantages of OCEN

1. To lenders:

To minimize the burden of traditional methods of gauging creditworthiness, OCEN can help lenders and LSPs in underwriting credit based on customer data from a huge database of borrowers’ credit history or score.

2. To MSMEs:

If you are an MSME business owner, OCEN will benefit you with access to wider range of small and high-ticket loans through an innovative marketplace. There were about six lenders last year active on OCEN platform but many more are in the pipeline. Not only lenders, but this network also has its reach to other lenders,LSPs and TSPs. 

Emerging Use Cases of OCEN:

1. Account Aggregators:

This role is expected to change access for micro enterprises to working capital credit when OCEN APIs will combine for lending.

2. LSP (Loan Service Provider):

For OCEN agents are required for a borrower ensuring safety and security. LSP helps borrowers to get affordable credit at lower interest rates and connect with lenders to create more defined offerings.

3. Derived Data Providers and Underwriting Modelers:

They can journalise their learnings from OCEN-extracted LSP which help other lenders as well and provide their analysis on the underwriting process and credit scores.


India is already building its digital infrastructure, such as UPI, Account Aggregators (AA), and OCEN is set to transform the lending process as its vision to make billion people participate in the credit market. The country has a huge opportunity to digitize and provide a real time credit disbursement to bottom of the pyramid. It will not only open new entrants to participate in the OCEN, but will also create a level playing field for all stakeholders. 

Listen to what Nandan Nilekani has to say about OCEN

To find out how OCEN will impact your business or industry in general reach out to us at info@perfios.com 

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