What is RBI's New Unified Lending Interface System?

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The Unified Lending Interface (ULI) is an upcoming digital platform set to be launched by the Reserve Bank of India, poised to transform the lending process across the country. This digital platform aims to make borrowing and lending easier and more standardized. ULI takes inspiration from the success of the Unified Payments Interface (UPI). It brings banks, NBFCs, and fintech companies together on one platform to simplify loan applications. This makes the process quicker and more accessible.

ULI has several key features.

• It offers real-time credit checks automated loan processing, and clear loan comparisons.
• People who want to borrow money can see many loan options. They can compare interest rates and pick the best loan for their needs. The platform uses automation and data analysis to approve and give out loans faster. This cuts down on the usual time-consuming steps.
• For lenders, ULI expands their reach, speeds up processing, and enables data-based choices, which cuts down risks and running costs.

The platform's appeal grows due to its safe handling of data and flexible payback options. ULI is set to cause a revolution in India's lending scene by making credit easier to get more efficient, and clearer. This will help reach the bigger aim of bringing more people into the financial system and boosting economic growth.

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RBI Governor Shaktikanta Das, during his inaugural address at the Global DPI and Emerging Tech Conference, stated that the nationwide rollout of the Unified Lending Interface (ULI) will take place "in due course," drawing from the insights gained during the pilot project. He highlighted that the ULI platform ensures a seamless exchange of digital information, including land records from various states, between data service providers and lenders. This significantly reduces the time required for credit appraisals, particularly benefiting smaller and rural borrowers.

Source: DDlive