Imagine applying for a loan as easy as sending money through GPay. That convenience is on its way with the Unified Lending Interface (ULI), an initiative by the Reserve Bank of India.
He RBI is developing ULI platform to speed up the loan application process.
Through this platform, banks can connect via API to access financial information stored in digital deposits, such as insurance policies, pension records and shares.
When you apply for a loan through your bank’s app, you’ll soon be able to grant your bank permission to access all of your financial data quickly.
This means the bank can review your entire financial profile in seconds.
As a result, your loan approval process could be completed in just a few hours or even less.
The ULI will also streamline business lending for small and medium-sized enterprises (SMEs). The platform will integrate data from GST networks and, in some states, digitized land records, making the loan application process more efficient.
With ULI, we can even expect less paperwork and reduced wait times. The system aims to eliminate cumbersome documentation, making loan applications smoother and faster.
At the moment, ULI is in a pilot phase but it is planned to be expanded next year.
Even before ULI’s full launch, getting a loan had become easier.
ULI vs UPI: Key Differences
While ULI promises to reduce paperwork and speed up loan processing, it will not match the instant nature of UPI, experts say.
Unlike UPI, which transfers existing funds instantly, ULI involves assessing the credit risk of loans, which requires a thorough evaluation.
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