India’s lending sector is going to transform with ULI (Unified Lending Interface), A one-stop solution to access borrowers’ data from various sources with consent. It will reduce the need for manual data collection during the loan approval. This platform will streamline the credit check process and make lending efficient in the financial sector.

What Is Unified Lending Interface (ULI)?

ULI will be an online platform that collects data from authentic sources, such as government databases, credit bureaus, and financial institutions. Access to all financial information in one place will help banks check the financial standing of borrowers during the lending process.

How ULI can change Lending process?

How Can ULI Change The Lending Process?

Here’s how the Unique Lending Identifier (ULI) reshapes the lending process:

  • Centralized Data Access

ULI provides financial, land, and other data in one place and eliminates the need of manual collection of information from multiple sources. With centralized access businesses can check the creditworthiness of the borrower quickly.

  • Fast Loan Approvals

With instant access to borrower data, lenders can approve loans quickly. This single and instant approach is helpful for small businesses and rural borrowers, who often experience delays in loan approvals.

  • Enhanced Financial Inclusion

The ULI RBI platform aims to help underreserved groups that usually struggle to get loans, like small businesses and rural borrowers. It simplifies the loan approval process by eliminating the paperwork and helps individuals secure loans easily.

  • Easy Integration

ULI uses standardized API which can be easily integrated into the existing system of business. It is cost-effective and the plug-and-play model reduces the need for technical expertise.

Automate your KYC Process & reduce Fraud!

We have helped 200+ companies in reducing Fraud by 95%

Book a demo to learn more

Steps for Lenders to Effectively Use ULI

To access the full benefit of ULI, lenders can opt for the following steps

  • Connect to the ULI Platform

Lenders should integrate their loan management system with ULIs standardized APIs. This unified integration will allow lenders to access the data needed for credit evaluations.

  • Training and Awareness

Lenders should provide training to the staff. Familiarity with the system’s features and capabilities will help streamline the lending process.

Benefits of ULI for Lenders.

Benefits of Using ULI For Lenders

Lenders can get the following benefits by using the Unified Lending Interface.

  • Reduced Operation Costs

By using ULI RBI in the operations business can optimize the data collection and verification process. It will eliminate the cost and time spent on the data collection from multiple sources. Additionally, automation in the verification process further decreases the need for manual checking, reducing labour costs associated with administrative tasks. 

  • Improved Customer Experience

ULI will reduce the delays and waiting time that often occur during the borrower’s verification process. The fast and simple loan approval process will improve the customer experience.

  • Expansion in Market Reach

A Unified System allows lenders to access information on underreserved categories such as rural areas, where traditional data collection is challenging. This expansion allows the lender to broaden their portfolios and connect with a larger customer base.

Data Privacy In Unified Lending Interface

RBI’s Unified Lending Interface (ULI) strongly focuses on data privacy. The platform makes sure that borrower information is collected only after their consent. This consent-based system protects sensitive financial data from unauthorized access.

Role of ULI in Building Digital Finance

The ULI is an important part of RBI’s plan to build a digital public infrastructure. RBI governor Shaktikanta Das stated that ULI will build a more connected digital system, including the JAM trinity (Jan Dhan, Aadhaar, Mobile), UPI, and Central Bank Digital Currency (CBCD). These initiatives will improve financial inclusion, make it easier to access credit and improve the Indian financial system.

Trial Phase and Upcoming Launch

Currently, ULI is in its trial Phase, the early results are positive showing that it can speed up a credit appraisal. Based on the results, the RBI plans to launch the platform soon. The launch of ULI will improve access to credit for small and rural borrowers.

Conclusion

Unified Lending interface is a big step towards transforming India’s lending sector. This platform brings the borrower’s data to a single place and speeds up the loan approval process. ULI helps lenders in borrower verification and makes easy loan approvals. It is majorly helpful for small businesses and rural people who often struggle to get loans. Currently, ULI is in the testing phase, RBI is going to launch it soon.

FAQs

What is the Unified Lending Interface RBI?

ULI by RBI is a digital platform that provides borrowers with information from various sources in a single place and simplifies the lending approval process.

How will ULI work?

ULI will provide the borrower’s details from authentic sources such as Aadhaar, PAN, and state land records during the loan approval process.

What is the difference between ULI and UPI?

ULI streamlines the loan approval process by collecting borrower data in one place fastening the loan approval and borrower verification.

On the other hand, UPI (Unified Payments Interface) allows instant money transfer across bank accounts using mobile phones for quick payment. In simple words, ULI focuses on lending while UPI focuses on payments.

Automate your KYC Process & reduce Fraud!

We have helped 200+ companies in reducing Fraud by 95%

Book a demo to learn more