What is the Unified Lending Interface (ULI)?
The Reserve Bank of India (RBI) has introduced plans for the Unified Lending Interface. It’s a digital platform designed to facilitate seamless and consent-based flow of financial data from multiple service providers to lenders. Streamlining the credit appraisal process is the final aim that ULI is moving towards. Hence, benefits will shine through for small and rural borrowers (ones who don’t have any credit history).
How will it benefit the Public?
ULI allows access to a borrower’s financial information (like land records and economic activities) through standardized Application Programming Interfaces (APIs). This ‘plug and play’ model improves access to credit for people without extensive credit histories. Borrowers benefit from a more efficient loan application process and lenders gain knowledge to make informed lending activities.
Current Status and Future Prospects
Currently in its pilot stage, the ULI platform is expected to be launched nationwide in due course. The RBI anticipates that the Unified Lending Interface (ULI) will enhance the lending landscape in India by providing frictionless credit access to underserved sectors, including agriculture and small businesses.
