Like UPI platforms, the Reserve Bank of India is about to introduce a simple platform that allows users to take loans in a simple, secure, and fastest way. RBI governor announced they will launch the UNIFIED LENDING INTERFACE app (ULI) soon to be effective. It’s a simple mobile application that can be used by any person to apply for different types of loans and get approved fast.
This system integrates different lending services into a single interface. Rather than applying for loans, the users can track their statuses, and repayment management, and this enhances their overall accessibility. It completely ignores the boring paperwork and physical visits of banks to get and approve the Bank loans.
Who would find the Unified Lending Interface (ULI) app helpful?
ULI app is mostly beneficial for all those small/medium scale business owners and farmers. For those who want small-scale loans, they can also make use of this application.
For small business owners, truly their asset is time, but a hell lot of their time is wasted by visiting different banks to sanction a business loan. By using this application, they can avoid visiting the branches and can invest their time more on business and improve it.
Like that, farmers want small-scale loans but they need to work on land for maximum productivity.
Additionally, some personalities other than business owners can make use of ULI to get loans (but only for a small amount). Make use of the app and get
Without changing the current procedures, the financial institutions can quickly proceed with the loan to the users.
How does ULI work?
TULI app works based on the details in the UID card, land revenue reports issued by the state and central governments, PAN card, Bank account, etc. The procedures are done by checking the mentioned details and it combines with other details such as civil score, bank transactions, previous financial history of the user, etc.
Last year, RBI introduced a pilot project to check the working of the system and it was successful. That’s why the system is going to launch soon. All the final setup is already completed. The testing was completed based on the Kisan credit card loan, Home loan, MSME loan, and the loans for the dairy farmers.
To prevent the misuse of the ULI app, AI-enabled security systems are developed. The Reserve Bank innovation hub under the RBI has developed the whole system.
This project primarily aims to digitalize the whole banking system. And hope this will be a good start.
Features of the ULI system
- It speeds up the process of verifying information or details to sanction loans for medium or small-scale business owners and entrepreneurs.
- Ensures the security of personal details related to banking
- It reduces the credit appraisal time by receiving the details from the different data providers.
- By combining more than two systems, it simplifies the complication of the loan provisions.
- Reduce the complex documentation procedures.
- Completely change the loan procedures and make even a common man can access the loan in quick time.
India’s digital revolution growing faster
We all know how UPI apps like Google Pay, PhonPe, Paytm, etc influenced and simplified the payment system. It helped us to reduce the risk of carrying cash in hand. That was a great effort from RBI and it successfully running without any issues since it was launched.
They hope ULI is going to democratize easy access to credits and create a friendly ecosystem. It is going to make financial procedures accessible to everyone. It eliminates the delay in the loan process and is easily available to almost all business persons. It potentially speeds up the economic growth of India.
Help for startups
Capital is a problem for every startup. I know a lot of people, including my friends, who have excellent business ideas, but all these ideas remain on paper and are left as dreams due to a lack of capital. Truly, capital amount prevents great ideas from moving beyond the concept stage.
Now it’s not to worry for the capital and the dream can come true by using the ULI. By offering various loan options and competitive interest rates, the ULI app empowers startups to secure the necessary funding to bring their ideas to life. And eventually successful. This will lead to the creation of more job opportunities.
How can you make use of the ULI app?
First of all, you have to wait until the app to launched in the market through the official website and thereby download it from the app stores. The app will be available to download for both Android and iOS users. There should be login procedures like what we do with other mobile applications. I hope the signup procedures will be documented by the RBI while launching the application.
Make sure the personal details as the same as on the government-issued papers or certificates. Your application may be rejected because of the mismatch issues.
For small businesses, some documents are a must such as TIN, GST registration, PAN card, bank details, certificates from the different authorities, etc. It is better to keep the scanned copies of all the documents and ensure the scanned files should be clear. So scan and save the files in high resolution.
You may upload the receipts of the various taxes that you paid to the financial institutions, so it is better to keep scanned copies of them too.
Shakthikanta Das statement – RBI governor
See Shaktikanta Das’s statement about launching the ULI app, the respected Governor of RBI.
The Unified Lending Interface (ULI), to be launched “in due course”, will cut the time for credit appraisal for these borrowers and facilitate a consent-based flow of digital information.
Summary
It’s about to conclude the post, but still a lot of information to come since this is just a statement for launching the unified lending interface application. All the procedures will be documented and released at the time of launch. We don’t know when will release the app but it may not go too long.
All that your needs related to the ULI will be posted on this blog and I recommend you to keep updated with us.
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