UNIFIED LENDING INTERFACE (ULI) PILOT

GS2 GOVERNANCE

Overview:

Launched by the Reserve Bank of India (RBI) in August 2023, the Unified Lending Interface (ULI) has facilitated ₹38,000 crore in loans across 7.5 lakh transactions. ULI aims to streamline credit delivery by connecting lenders to diverse data sources via a single interface.

What is ULI?

ULI is a technology platform that provides seamless access to digitized financial and non-financial data, connecting lenders to multiple data providers through standard Application Programming Interfaces (APIs). This simplifies the credit underwriting process and enables faster loan access.

Key Features:

• Access to data like land records, satellite imagery, and financial insights.
• Simplifies loan approval, especially for first-time borrowers without traditional credit histories.
• Speeds up creditworthiness assessment by leveraging available data.

Benefits for Borrowers:

• Borrowers, particularly in rural areas, can access loans with minimal documentation.
• Automated decision-making based on economic activity data, like milk cooperative cash flow and land ownership records, helps borrowers like dairy farmers.

Expansion and Future Plans: RBI plans to expand ULI’s scope to include more loan types and data providers, such as kisan credit cards, housing loans, and micro-business loans, further simplifying access for diverse borrowers.

Digital Public Infrastructure: ULI is a key component of India’s Digital Public Infrastructure (DPI), aimed at improving transparency and efficiency in credit delivery by breaking down data silos and enhancing financial transactions.

Role of FinTechs: FinTech companies can access a wide range of lenders through ULI, providing deeper customer insights and fostering collaboration between traditional banks and FinTechs to improve the lending landscape.