RBI to Launch Unified Lending Interface (ULI) for Faster and Easier Access to Credit

Soon, getting a loan for your small business, buying farming equipment, or covering other essential needs will become faster and easier. The Reserve Bank of India (RBI) is set to roll out the Unified Lending Interface (ULI) nationwide to simplify the lending process across India. Initially launched as a pilot in 2023, ULI will soon be widely available, according to RBI Governor Shaktikanta Das.

Like the Unified Payments Interface (UPI) revolutionized payments, ULI aims to make borrowing quicker and easier, especially for those who need credit most.

What is Unified Lending Interface (ULI)?

ULI is a digital platform designed to streamline the lending process, especially for those who have struggled to access credit, such as farmers and small business owners. It addresses the unmet demand for loans across various sectors, including agriculture and Micro, Small, and Medium Enterprises (MSMEs).

How does ULI speed up loan processing?

ULI integrates data from sources like Aadhaar, e-KYC, land records, and PAN databases, allowing lenders to quickly assess creditworthiness, which speeds up the loan process. This makes borrowing easier, quicker, and more cost-effective by reducing paperwork and wait times.ULI simplifies the lending process by reducing delays and making loans easier to access. It also aims to reduce malpractices by standardizing procedures.

Key Features of ULI:

1. Consent-based access: Lenders can access your data with your consent, including financial and non-financial information.
2. Standardized APIs: Simplifies data access for lenders, reducing system integration complexity.
3. Plug and play: Lenders can use ULI's ready-made infrastructure to provide loans quickly without needing extensive setup.

Benefits of ULI:

1. Frictionless credit: Less paperwork makes the lending process smoother for rural borrowers and small businesses.
2. Faster loan approvals: Centralized data speeds up credit assessments.
3. Centralized data access: Easier creditworthiness assessments with combined financial and non-financial data.
4. Support for agriculture and MSMEs: Focuses on sectors that often face credit shortages.
Integration with other digital systems.

ULI will be part of India’s broader digital ecosystem, working with Jan Dhan, Aadhaar, and UPI to improve financial inclusion and strengthen the country’s digital infrastructure.