ULI..! Get Online Loan In 5 Minutes Powered By The Government…?
Following the groundbreaking success of the Unified Payment Interface in India and multiple countries, Reserve Bank Of India has announced the launch of Unified Lending Interface(ULI) to transform the Indian lending landscape.
Can it replicate the success of UPI ? Or, the road ahead is more difficult than the earlier one. Let’s explore..!!!
How Will ULI Work ? A 5-Step Easy Guide For You
- ULI will work as a digital marketplace monitored by RBI.
- Borrowers will submit their loan applications.
- Meanwhile, applications will be sent to various lenders according to their eligibility criteria.
- Subsequently, lenders will go through these applications and offer directly to the borrowers.
- Ultimately, the borrowers will have a chance to select the best offer as per their requirement.
I’m A Borrower! What Will I Get ?
- Faster Loan Approvals: Clear and simple procedures on the ULI platform will help to enable a drastic decrease in the loan approval period.
- Wider Choice Of Lenders: Borrowers can compare the rates from different money lenders to acquire the most appropriate loan at reasonable rates.
- Enhanced Transparency: The Unified Lending Interface offers a transparent market through which the borrowers can follow up on the status of their loan including the terms and conditions.
Loan Recovery Challenge: The Biggest Hurdle Is No More Big..!!!
Recovery of loans is one of the major problems of the lending industry. However, Unified Lending Interface can solve this problem by enabling lenders to get full information on borrowers’ credit histories and data flow.
Moreover, the Government is planning to integrate the state land records with ULI’s platform to give a better assessment of collateral and therefore, will improve recovery rates.
Nationwide Rollout Of ULI: Is An Earlier Launch Anticipated ?
Recently RBI completed a few pilot projects and is now planning to launch ULI across India in the forthcoming months before the new financial year begins.
In Conclusion: Will Unified Lending Interface Prove To Be A Masterstroke Or Not ?
RBI believes the ULI will drastically change the lending scenario in India in terms of credit availability and cost to the borrowers.
However, the financial stakeholders are still monitoring its potential and will stay on their wait-and-watch policy till its launch.
