RBI to launch Unified Lending Interface (ULI), Check Features and Benefits

Context: The RBI Governor has announced that the nationwide launch of the Unified Lending Interface (ULI) will happen soon.

What is Unified Lending Interface (ULI)?

• ULI is a digital platform to simplify the lending ecosystem.
• It is designed and developed by the Reserve Bank Innovation Hub (RBIH).

A Unified Lending Interface (ULI) is developed to streamline the lending process in India. Similar to how the Unified Payments Interface (UPI) revolutionized digital payments, ULI aims to transform the lending landscape by facilitating a seamless and consent-based flow of digital information between borrowers and lenders.

Features of ULI

• ULI will reduce the time required for credit appraisal, particularly for small and rural borrowers.
• It will enable seamless credit delivery and quicker turnaround time without requiring extensive documentation.
• It will provide an easy and consent-based flow of digital financial information from various sources such as Account aggregators, Banks, Credit information companies etc.
• The platform will help to cater for a large demand for credit across various sectors, particularly for agricultural and MSME borrowers.

How Unified Lending Interface (ULI) works?

ULI is part of the broader digital transformation in India’s financial services sector, aiming to foster innovation, increase transparency, and promote financial inclusion across the country.

• Borrowers provide consent to share their financial and non-financial data with lenders through the ULI platform.
• Lenders can access this information through standardized Application Programming Interfaces (APIs), allowing for a “plug and play” approach.
• The platform will facilitate the seamless exchange of data between borrowers and lenders, reducing the need for manual intervention.

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