- ULI platform to revolutionize lending by speeding up credit access for small, rural businesses.
- Digital flow of data via ULI aims to slash loan processing times, easing credit for agriculture and MSMEs.
- RBI’s ULI could mirror UPI’s impact, streamlining lending and boosting economic growth in key sectors.
India is gearing up to launch a new digital platform designed to make lending easier for small and rural businesses, tackling a major issue with credit access across the board. The Governor of the Reserve Bank of India ( RBI ), Shaktikanta Das, announced the upcoming Unified Lending Interface (ULI) at a recent event, highlighting its potential to reshape India’s lending market.
The ULI platform aims to speed up credit assessments by allowing the smooth, consent-based sharing of digital information between borrowers and lenders. Governor Das explained that the ULI will give digital access to key information like land records from various sources, directly to financial institutions.
This digital data flow is expected to shorten loan processing times, especially helping smaller and rural borrowers who often experience delays due to the mountain of paperwork typically required.
The RBI had already tested the ULI platform last year, with the goal of making credit more accessible by simplifying the transfer of digital information to lenders. The trial showed that loans could be processed in minutes, a stark contrast to the long waits that small and rural borrowers have faced.
Das compared the ULI to the Unified Payments Interface (UPI), which revolutionized digital payments in India. He’s optimistic that the ULI will do the same for the lending sector, making it more efficient and accessible.
Das concluded by saying the platform aims to cut the cost of multiple technical integrations, leading to faster access to credit without the need for extensive documentation. This approach is expected to play a big role in boosting the growth of agriculture and Micro, Small, and Medium Enterprises (MSMEs) in India – sectors that are vital to the country’s economy.
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