What is the Unified Lending Interface (ULI)?

About Unified Lending Interface (ULI):

• It is a technological platform that aims to provide a friction-less credit by cutting down the time taken for appraisal, especially for rural and small borrowers.
• It serves as a bridge, connecting banks, Non Banking Financial Companies (NBFCs), fintech firms, and borrowers, enabling a more efficient and transparent credit disbursement process.
• It is expected to cater to a large unmet demand for credit across various sectors, particularly for agricultural and MSME borrowers.
• It facilitates seamless flow of digital information, including land records of various states, from multiple data service providers to lenders.
• It enables the borrowers to get seamless delivery of credit, quicker turnaround time without requiring extensive documentation.
• It has common and standardised Application Programming Interfaces (APIs) designed for a plug-and-play approach to ensure digital access to information from diverse sources, i.e., information relevant to a lender giving out a loan to a potential borrower.
• The entire system is consent-based, i.e., based on the consent of the potential borrower.
• It reduces the complexity of multiple technical integrations.
• It promotes transparency by allowing borrowers to track their loan applications in real-time.