ULI Simplifying Credit Underwriting In India

Unified Lending Interface (ULI) is a platform that facilitates the seamless flow of customers’ digitised financial and non-financial data from multiple data service providers to lenders making credit underwriting seamless and customer journeys frictionless for a diverse range of borrowers.

This platform facilitates seamless and consent flow of digital information, including even land records of various States. This will bring down time taken for credit appraisal, especially for small and rural borrowers without any credit history.

Talking to Bizz Buzz, Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors said, “The ULI architecture has common and standardised APIs designed for 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.”

ULI reduces the complexity of multiple technical integrations. ULIs experiences from the pilot are not public yet. But it enables borrowers to get the benefit of seamless delivery of credit, quicker turnaround time without requiring extensive documentation by digitising customers’ access to financial and non-financial data. Just as UPI has transformed the payment ecosystem, ULI is expected to play a similar role in transforming the lending space in the country, he said.

The new trinity of JAM-UPI-ULI will be a revolutionary step forward in India’s digital journey, he added. On August 26, Reserve Bank of India (RBI) Governor Shaktikanta Das announced that the Unified Lending Interface (ULI), a new technology platform currently in its pilot stage, is set to revolutionise credit delivery to farmers and MSME borrowers by enabling frictionless access to banking services.

Speaking at a global conference on digital public infrastructure and emerging technologies in Bengaluru, Das explained that ULI will facilitate the seamless, consent-based transfer of digital information, including land records from various states, from multiple data providers to lenders. This process significantly reduces the time required for credit appraisal, particularly benefiting small and rural borrowers.