What is ULI?
Unified Lending Interface (ULI) is a digital platform introduced by the Reserve Bank of India (RBI).
It allows for the seamless flow of a borrower’s financial and non-financial data from various sources to lenders.
This platform aims to make credit processes smoother and faster, especially for farmers and small businesses.
The ULI architecture has common and standardised Application Programming Interfaces (APIs) designed for a ‘plug and play’ approach to ensure digital access to information from diverse sources
How will it work?
ULI gathers data from multiple sources, including government databases and satellite imagery, through standardized APIs
Lenders can access comprehensive data about borrowers without extensive paperwork, making the credit appraisal process quicker.
Lenders can use this data to make fast and informed loan decisions, potentially disbursing loans in minutes.
Even first-time borrowers or those without a credit history can get loans by leveraging the data available on the ULI platform.
How did it start?
On August 10, 2023, the RBI announced the creation of a Public Tech Platform for Frictionless Credit, now known as ULI.
A pilot for digitalizing Kisan Credit Card (KCC) loans began in September 2022 in select districts of several states.
The pilot demonstrated that ULI could facilitate loan disbursement with minimal paperwork and improved efficiency.
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