No More CIBIL Checks? New Credit Initiative Promises Faster Loans, Wider Access
Currently, banks and financial institutions primarily depend on Credit Information Bureau (India) Limited (CIBIL) scores to assess an applicant's creditworthiness. However, with ULI, the aim is to create a more streamlined and inclusive lending process.
To ensure faster implementation, the DFS has instructed all financial institutions to review ULI adoption on a monthly basis. Those that haven't yet joined the system have been told to take immediate steps in that direction.
According to an statement issued by the Ministry of Finance, on June 23, DFS Secretary M Nagaraju and Reserve Bank of India officials met with representatives from various central and state ministries to discuss the nationwide rollout of ULI. The goal is to make loan processing faster, more efficient, and less dependent on traditional credit bureaus.
If implemented successfully, ULI could bring a major shift in how loans are approved in India, making the system more accessible to a wider range of borrowers.
What is Unified Lending Interface (ULI)?
According to the Ministry of Finance, the Unified Lending Interface is a digital platform designed to simplify lending processes by integrating technology, data, and policy. It enables lenders to access high-quality, verified data from government ministries and departments, facilitating faster and more inclusive credit delivery.
Key Features of ULI
Frictionless Credit Delivery: Streamlines loan disbursement processes, reducing time and effort required for credit appraisal.
Consent-Based Data Sharing: Borrowers can grant lenders permission to access their financial and non-financial records, expediting loan processing.
Standardised APIs: Enables seamless data exchange between financial institutions, eliminating extensive technical integration.
Alternative Data Evaluation: Uses non-traditional data sources, such as utility bill payments and GST records, to assess creditworthiness.
Benefits of ULI
Increased Financial Inclusion: Brings rural borrowers and small businesses into the formal credit ecosystem.
Improved Transparency: Promotes transparency in financial transactions, reducing fraud and inefficiencies.
Reduced Loan Processing Costs: Automates and digitises the lending process, minimising paperwork and operational costs.
Enhanced Credit Access: Simplifies the loan process for MSMEs and farmers, providing timely access to credit.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
an hour ago
- Time of India
MahaMetro Plans Feeder Bus Service From KP To Govt Offices
Nagpur: After its initial launch of feeder services from three Metro stations recently, MahaMetro is now planning to launch a dedicated feeder bus service from Kasturchand Park (KP) station for the convenience of visitors and the staff at several key govt offices in Civil Lines and Sadar. The proposed feeder route, being developed in coordination with the Nagpur Municipal Corporation (NMC), is expected to serve important govt institutions including the police headquarters, CAG office, high court, chief minister's office, divisional commissioner's office, district court, Samaj Kalyan office, NMC's Civil Lines office, Van Bhavan, Govt Press, Vidhan Bhavan, and both central and state GST offices. MahaMetro officials stated that the initiative aims to promote sustainable mobility, reduce dependence on personal vehicles, and increase Metro ridership by bridging the critical last-mile gap. The route is currently under review, and feedback collected during Metro Samwad outreach sessions will help shape the final service plan. One such recent Metro Samwad was held at the state GST office, Civil Lines, where additional commissioner of state tax (Nagpur Zone) Tejrao Pacharne and joint commissioners Sanjay Kandhare and Rajendra Masram encouraged staff to consider using the Metro regularly. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Design-Driven Durability: Discover Premium Stainless Steel Sheets Perforated Stainless Steel Sheets | Search ADS Search Now Undo The GST office is located around 1.8km from the nearest Metro station, highlighting the urgent need for seamless last-mile connectivity. The officials emphasised the importance of holding similar interactions at other departments to understand commuter requirements better and ensure route efficiency. The upcoming feeder service is not only expected to benefit thousands of govt employees but also citizens visiting these offices daily, making their Metro journeys smoother and more accessible. MahaMetro's move reinforces its broader mission to develop Nagpur as a model city for integrated, inclusive, and green urban transport.
Time of India
an hour ago
- Time of India
Arora meets bizmen, gives them a hearing
Ludhiana: Cabinet minister Sanjeev Arora gave a patient hearing to the issues being faced by the industrialists of the city during an interaction with them on the premises of Avon Cycles here Saturday evening. Among the leading industrialists present in the meeting were Onkar Singh Pahwa, Rahul Ahuja, SC Ralhan, JR Singhal, Sanjeev Pahwa, Rajnish Ahuja, Mandeep Pahwa, Arshdeep Singh Sahni, Harsimerjit Singh Lucky, MS Bhogal and Gurmeet Singh Kular. Matters related to GST, PSPCL, freight subsidy, industrial plots, industrial corridor, traffic jams and municipal corporation were taken up. On fake GST billing, Arora asked the industrialists to suggest remedial measures to him so that strict action can be initiated. The minister was told that the industrialists doing genuine business are suffering losses due to fake GST billing. On the industrialists' demand that the GST rate should be reduced from 12% to 5% on bicycles, Arora said when he was a Rajya Sabha MP, he had taken up the matter with Union finance minister Nirmala Sitharaman. He said the state govt has distributed industrial subsidies worth Rs 222 crore in the first four months of the current financial year, and that the remaining subsidies worth Rs 28 crore would be distributed in the near future. Subsidies worth about Rs 80 crore were distributed in the last fiscal, he added. The cabinet minister said the state govt has already set up nine industrial committees for industrial policy enhancement in Punjab, adding that the remaining committees would be announced by next week. The motive of setting up these committees is to gather suggestions from industry experts for strengthening the state's industrial policy and further improving ease of doing business. The industrialists thanked the state govt for taking care of their issues in the last three years. Arora said he has observed that despite Punjab being a landlocked and border state, people from outside are willing to invest here because of the business-friendly ecosystem. He added that the state govt is also trying to make pro-industry policies and boost ease of doing business by ensuring that new units get approvals within 45 days.
Time of India
5 hours ago
- Time of India
‘GST Act little beyond understanding of common man'; HC overturns restaurant registration cancellation
Dehradun: Uttarakhand high court has quashed the cancellation of a restaurant's GST registration and allowed it to reapply, saying the GST Act remains "technically complex for citizens focused on running their daily businesses". The division bench of Chief Justice G Narendar and Justice Alok Mahra held that the delay in seeking revocation must be condoned as such cancellations affect sources of livelihood and reduce state revenue. The court passed the order earlier this week while hearing a petition filed by M/s River View Restaurant in Bageshwar. The bench noted that GST is still in its initial phase and that several of its provisions are beyond the understanding of a common person. The court directed the petitioner to file a fresh application for restoration of GST registration within three weeks. It also instructed the department to process the application within the following three-week period. Counsel for the respondents — commissioner and joint commissioner of state goods and services tax — said the petitioner had the option to apply for revocation under Section 30 of the Central GST Act, 2017. The provision allows a registered taxpayer, whose GST registration has been cancelled by the proper officer on their own motion, to apply for revocation of the cancellation order within 30 days — which can be extended up to 90 days — provided all pending returns are filed and tax dues are paid. The petitioner's counsel admitted that no such application was filed within the prescribed time. The court said, "We feel that the limitation should not take precedence for reconsideration of the order of cancellation. Keeping a larger objective of the involvement of livelihood and also loss of revenue to the department, we are of the considered opinion that delay in invoking the provisions of the Act is required to be condoned and is, accordingly, condoned." Several high courts, including Delhi, Madras and Gujarat, have in recent months condoned delays in GST registration revocation filings under section 30, particularly in cases involving small businesses, where courts observed that cancellation could affect income and state revenue.
