Unified Lending Interface (ULI) Pilot

January 25, 2025

The Unified Lending Interface (ULI) was launched by the Reserve Bank of India (RBI) to streamline the lending process. Since its pilot inception in August 2023, ULI has facilitated the disbursement of ₹38,000 crore across 7.5 lakh loans. This platform aims to revolutionise credit delivery by connecting lenders with diverse data sources through a single interface.

What Is the Unified Lending Interface?

ULI is a technology platform designed to enable seamless access to digitised financial and non-financial data.
It connects lenders to multiple data service providers via standardised Application Programming Interfaces (APIs).
This ‘plug and play’ approach simplifies the credit underwriting process, making it easier for borrowers to access loans.

Key Features of ULI

The ULI allows lenders to access a comprehensive range of data including land records, satellite imagery, and financial insights.
This is particularly beneficial for first-time borrowers who lack traditional credit histories.
With ULI, lenders can quickly assess an applicant’s creditworthiness through available data, reducing the time and complexity of loan approvals.

Benefits for Borrowers

Borrowers, especially from rural areas, can now secure loans without extensive documentation. ULI provides vital information about their economic activities, allowing lenders to automate decision-making. For instance, a dairy farmer can have their loan eligibility assessed based on cash flow data from milk cooperatives and land ownership records.

Expansion and Future Scope

The RBI plans to expand ULI’s scope by incorporating more loan types and data providers. This includes kisan credit cards, housing loans, and micro-business loans. The goal is to enhance the platform’s capabilities and further simplify credit access for diverse borrower profiles.

Digital Public Infrastructure

India’s embrace of Digital Public Infrastructure (DPI) facilitates transparency and efficiency across various sectors. ULI is important component of this infrastructure, aiming to break down data silos that hinder effective credit delivery. By integrating diverse data sources, ULI enhances the overall digital ecosystem for financial transactions.

The Role of FinTechs

FinTech companies stand to benefit from ULI. They can access a variety of lenders through a single platform, enabling them to provide deeper customer insights. This collaboration between traditional banks and FinTechs is expected to enhance the lending landscape further.

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