BS EDIT: How ULI will transform access to loans

By Business Standard Editorial CommentPublished On Aug 28, 2024

How ULI will transform access to loans

RBI’s Unified Lending Interface aims to enhance ease of lending

Enhancing credit access

With seamless flow of information, ULI will make it easy for lenders to assess creditworthiness of borrowers, mainly benefitting MSMEs and agri sectors

Lower loan approval time

The platform will cut down time for loan approval and disbursement, making the process more efficient with minimal documentation

Bridging the credit gap

There is a significant gap between credit supply and demand, especially in rural areas. ULI aims to address this gap

Leveraging digital infra

Moving beyond credit scores, ULI will use advanced algorithms and data sources like land records and digital footprints to ease risk assessment

Challenges and the way forward

While ULI promises lending growth, banks must mobilise higher deposits. RBI will also need to monitor lending practices closely