The entire process of taking a loan from Unified Lending Interface (ULI) will be easy. It is designed to reduce the time and paperwork taken in credit processing. It combines open architecture with open application programming interface (API). Because of this, financial institutions can easily join the plug and play model.
The process of taking a loan is still very complicated. You have to complete all the paperwork. There are daily rounds of banks. But, the government is now going to make this process very easy. Reserve Bank (RBI) Governor Shaktikanta Das has announced to bring Unified Lending Interface (ULI) platform like payment app UPI.
RBI launched a pilot project of a technical platform to provide frictionless credit i.e. easy loan last year (August 2023). During the one-year pilot project, the central bank focused on Kisan Credit Card (KCC) loans, dairy loans, MSME loans, personal loans and home loans, which are in high demand. What will be the benefit to consumers?
Even now, many apps claim to provide instant loans. But, RBI’s control over them is very limited. These apps are also accused of arbitrariness and mental harassment at times. But, if RBI keeps a direct eye on the apps with ULI platform, then the scope of any irregularities will also be less. This will make loan evaluation very easy, especially for rural and small consumers.
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How will it be easy to take a loan?
The entire process of taking a loan from Unified Lending Interface (ULI) will be easy. It has been designed to reduce the time and paperwork taken in credit processing. It combines open architecture with open application programming interface (API). Because of this, financial institutions can easily join the ‘plug and play’ model.
How will the ULI platform work?
The ULI app will collect data from different sources including Aadhaar, e-KYC, state government land records, PAN validation and account aggregator. It will also be linked with services like milk data from dairy cooperatives and home or property search data. Just like you make payment in UPI by just entering the PIN, similarly, if you are eligible, you will be able to take loan by just entering the PIN.
Will ULI be as successful as UPI?
Unified Payment Interface (UPI) was launched in April 2016. In its 8-year journey, UPI has changed the world of digital payment. You will find QR code scanners installed from paan shops to vegetable carts. Many other countries have also adopted the UPI model. To repeat the success of UPI, ULI will have to provide the same experience to the user.
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