Unified Lending Interface (ULI), Reserve Bank of India’s (RBI) UPI-like digital public infrastructure in lending space, has facilitated disbursal of over 600,000 loans amounting to Rs 27,000 crore.

       Out of this, about 160,000 loans amounting Rs 14,500 crore are to micro, small, and medium enterprises (MSMEs), according to the RBI’s trend and progress report.

       According to the report, twelve loan journeys have been introduced on the ULI platform, including kisan credit card, digital cattle, MSME (unsecured), housing, personal, tractor, micro business, vehicle, digital gold, e-Mudra, pension and dairy maintenance loans.

       “Based on the learnings and the positive response from stakeholders, the scope and coverage of the platform is being expanded to include more loan journeys, data providers and lenders,” RBI said in the report.

       ULI is a platform that unlocks financial and non-financial data, making credit underwriting seamless and customer journeys frictionless for a diverse range of borrowers.

       Also Read

       Small ticket transactions drag avg retail payments value by 48% in 3 years

       Wait for NAV and price on exchange to converge before investing

       RBI flags unsecured lending, private credit; calls for enhanced vigilance

       Premium

       Indian policymakers must balance growth amid global energy, tech shifts

       Rupee's Real Effective Exchange Rate climbs to 108.14 in Nov: RBI report

       The ULI architecture features common and standardised APIs, designed for a “plug and play” approach. This ensures digital access to information from diverse sources, reducing the complexity of multiple technical integrations. As a result, borrowers will benefit from seamless credit delivery and quicker turnaround times without requiring extensive documentation.

       Currently, credit appraisal is not seamless as data is available on different silos like central and state governments, local authorities, banks and identity authorities. ULI is expected to cut down the time taken for credit appraisal, especially for smaller and rural borrowers.

       The pilot for ULI (earlier known as Public Tech Platform for Frictionless Credit) started on August 17, 2023.

       So far, as many as 36 lenders, including various state-owned banks, private banks, small finance banks, district central co-operative banks, regional rural banks, and NBFCs have been on-boarded on the platform.

       “These lenders are using more than 50 data services including, inter alia, authentication and verification services, land records data from six states, satellite service, transliteration, property search services, dairy insights and identity/ document verification,” RBI’s report said.

       Former RBI governor Shaktikanta Das has said that ULI will transform the lending space similar to how the Unified Payments Interface (UPI) revolutionised the payments ecosystem.

       ULI has been conceptualised by RBI, designed and developed by the Reserve Bank Innovation Hub (RBIH).

       With ULI, lenders have easy access to customer data from various silos, including government databases (e.g., land records, GSTN), satellite imagery, and milk pouring societies using a simple plug-and-play model. Separately, with ULI borrowers gain access to more personalised and inclusive financial products, making borrowing simpler and more accessible.

       More From This Section

       Rupee falls to new low of 85.27 as importers stock up dollar at month end

       India eyes $25 billion export opportunity in US amid China tariff dispute

       Exporters ask for Rs 750 cr to target US market amid China's tariff woes

       CCI to intervene selectively, considering sector-specific dynamics

       Economic growth seen at 6.5% in FY25, RBI policy pushed down demand: FinMin