Reserve Bank of India's Unified Lending Interface (ULI)
The Reserve Bank of India (RBI) has introduced a new technology platform called the Unified Lending Interface (ULI) as part of its strategy to establish digital public infrastructure. This platform is designed to facilitate seamless credit to farmers and MSME borrowers by enabling frictionless data flow.
Key Features of ULI
- ULI facilitates the flow of both financial and non-financial data from multiple providers to lenders, enhancing the credit underwriting process.
- The platform supports consent-based digital information flow, including land records, reducing credit appraisal time for rural and small borrowers.
- Utilizes standardised Application Programming Interfaces (APIs) for easy integration, eliminating extensive documentation and speeding up credit delivery.
- Lenders gain access to comprehensive customer data from government databases and satellite imagery.
- Offers FinTechs a platform to connect with multiple lenders and provide richer customer insights.
Benefits for Borrowers and Lenders
- For first-time loan seekers without credit history, ULI offers a platform for obtaining necessary digital credit information.
- Lenders can easily access applicant data from diverse sources, simplifying the loan application process.
- For example, a dairy farmer's financial data can be sourced from milk cooperatives and land records to assess credit eligibility.
- ULI aids tenant farmers in obtaining agricultural credit without needing land titles by verifying the end use of funds.
Implementation and Pilot Project
- The RBI branded the ULI as part of its Public Tech Platform for Frictionless Credit on August 10, 2023.
- A pilot project for digitalising Kisan Credit Card (KCC) loans under ₹1.6 lakh began in September 2022 across select districts in India.
- The pilot demonstrated successful doorstep loan disbursement without paperwork.