- The Reserve Bank of India (RBI) has introduced the Unified Lending Interface (ULI) as a key initiative in its strategy to develop digital public infrastructure.
- Developed by the Reserve Bank Innovation Hub in Bengaluru, ULI is designed to streamline the credit process, initially targeting farmers and MSME borrowers.
- ULI is a digital platform that facilitates the seamless flow of a borrower’s financial and non-financial data from multiple sources to lenders.
- It operates through standardized Application Programming Interfaces (APIs) that enable a ‘plug and play’ approach, allowing lenders to access diverse data, including land records and other critical information.
- This system reduces the time and complexity of credit appraisal, particularly for small and rural borrowers who may not have a traditional credit history.
- For first-time loan seekers who lack a credit history, ULI provides lenders access to digital credit information.
- ULI enables lenders to automate decision-making, leading to faster loan approvals and disbursements.
Dig Deeper: Read about the Public Credit Registry and Credit Information Companies.
