Context:
Bengaluru-based Namma Yatri auto drivers are participating in pilot projects for small-ticket, unsecured loans on the Unified Lending Interface (ULI). UPI mandates are being explored for automated monthly or bi-monthly collections, ensuring better credit behavior.
About the Unified Lending Interface (ULI)
- Seamless Credit Underwriting
- ULI integrates financial and non-financial data, making lending processes frictionless.
- Standardized APIs
- A “plug-and-play” model allows easy access to borrower data from sources like land records, GSTN, satellite imagery, and other databases.
- Developed by RBI
- Conceptualized by the Reserve Bank of India (RBI) and developed by the Reserve Bank Innovation Hub (RBIH).
Current Progress & Future Potential
- 0.6 million loans worth ₹27,000 crore disbursed via ULI as of December 2024.
- 36 lenders, including banks and NBFCs, onboarded.
- Dynamic Recollection Models
- Exploring variable repayment plans based on weekly/monthly earnings of borrowers.
Industry Impact & Future Outlook
- Transformation of Lending
- Former RBI Governor Shaktikanta Das compared ULI’s potential impact on credit to how UPI revolutionized digital payments.
- Financial Inclusion
- ULI enables faster loan approvals with minimal documentation, making borrowing more accessible and personalized.
Source: BS
