Latest news with #ULI
Time of India
6 days ago
- Business
- Time of India
From collateral to clicks: RBI bulletin maps India's digital credit revolution
India's credit ecosystem is undergoing a major transformation, moving away from conventional collateral-based lending towards a more inclusive, data-centric approach powered by digital public infrastructure (DPI), according to the Reserve Bank of India 's (RBI) July Bulletin. At the heart of the FinTech revolution in India is India's Digital Public Infrastructure (DPI) — a framework that integrates technology, markets, and governance to serve public interest, said the central bank's report. Explore courses from Top Institutes in Please select course: Select a Course Category Project Management Degree Artificial Intelligence Leadership Operations Management CXO Data Science MBA Product Management Design Thinking Public Policy Technology Management Digital Marketing Data Science MCA Data Analytics healthcare others Healthcare Finance Others Cybersecurity Skills you'll gain: Portfolio Management Project Planning & Risk Analysis Strategic Project/Portfolio Selection Adaptive & Agile Project Management Duration: 6 Months IIT Delhi Certificate Programme in Project Management Starts on May 30, 2024 Get Details The Account Aggregator Framework, another cog in the DPI, Open Credit Enablement Network and the upcoming Unified Lending Interface (ULI) are establishing a new credit infrastructure aimed at making lending more streamlined, inclusive, and widely accessible. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cardiologist: The Best Method for a Flat Stomach After 50 (It's Genius!) Lulutox Undo Account Aggregator Framework is a crosssectoral framework for consented financial data sharing. Apart from facilitating credit delivery, this is an initiative towards open finance. It has now come a long way and is growing rapidly with onboarding of financial institutions, since guidelines were first issued in 2016, said the bulletin. ULI, the latest addition in the Digital Public Infrastructure for credit, is designed to simplify and democratize credit access by offering lenders regulated, seamless access to verified borrower data. Live Events The convergence of Jan Dhan Accounts, Aadhar and Mobile Phones, popularly known as the JAM trinity, UPI and ULI, represents a "significant advancement" in India's digital lending infrastructure. "One of ULI's standout features is its ability to tap into alternative digital data, enabling access to credit even for those without formal financial histories. Its integration with NABARD's e-KCC portal is expected to extend access to customers of District Central Co-operative and Regional Rural Banks, previously excluded from formal digital channels." The central bank noted that integration of state-level digitized data, such as land records and cooperative databases into the ULI framework, would provide novel cash flow-based lending solutions. Going forward, the potential for ULI to also harness data from e-commerce platforms and gig economy apps could open new doors for credit inclusion for small sellers, delivery workers, and freelancers, it said. OCEN that facilitates interactions among lenders, borrowers, and loan service providers, effectively uniting all participants within the credit ecosystem on a common platform to streamline credit delivery, is also poised to be a significant part of the fintech landscape. It is expected to enable lenders to make more informed credit decisions by utilising alternative data sources, such as cash flow information, the central bank said. Going forward, there is a "promising scope" for deeper integration between OCEN and the Open Network for Digital Commerce (ONDC). Such interoperability could democratise credit access further and open new avenues for MSMEs to participate in digital commerce, fostering broader economic growth on multiple fronts, the bulletin added. RBI said, fintech players have emerged as powerful enablers, transforming how credit reaches previously unserved and underserved populations. By leveraging the power of technology, they have significantly lowered the cost and complexity of delivering financial services to the last mile, Reserve Bank's bulletin said. "This has not only improved user experience but also addressed persistent challenges that had kept many outside the formal credit fold." The central bank said that views expressed in this article are those of the authors and do not represent the views of the Reserve Bank of India.
Mint
21-07-2025
- Business
- Mint
Credit score no longer a barrier? ULI aims to simplify and speed up lending
In a major shift that could result in transforming the country's credit ecosystem, the Ministry of Finance is gearing up to roll out the Unified Lending Interface (ULI). This will be a new digital lending system that could eliminate the need for traditional credit score checks before sanctioning personal loans or credit cards, reported NDTV. The move is spearheaded by the Department of Financial Services (DFS), it aims to create a more inclusive, transparent and seamless lending ecosystem by integrating data, policy and technology. ULI is conceptualised to streamline the loan approval and application process. Thus making credit accessible to a broader segment of the masses, including but not limited to small businesses, farmers and those lacking a strong credit score. Currently lending institutions rely heavily on credit bureaus such as CIBIL, CRIF High Mark, Equifax among others to assess an applicant's repayment ability. Still with ULI lenders will be able to evaluate creditworthiness using alternative data such as utility payments, GST returns and other similar government records making it a clear game-changer for underserved aspirational borrowers. The Finance Ministry recently confirmed that top officials from DFS, RBI and various government departments met to improvise and accelerate ULI's nationwide implementation. Financial institutions have been asked to review adoption progress on a monthly basis, and those yet to join the ULI network have been urged to act in swift fashion. Consent based data sharing. This ensures transparency and privacy. Standardised APIs permit seamless integration across lending platforms. Evaluation of non-traditional financial behaviour, boosts credit availability for underserved segments. Lower operational costs, streamlines backend processes for lending institutions. If executed in seamless fashion and successfully, ULI could significantly bring down the dependency on credit scores, boost transparency and extend formal credit to segments earlier considered unbankable. For aspirational borrowers, this means easier, faster access to personal loans, without the stress of a low or nearly no credit history. As the nation's fintech sector continues to evolve and grow, ULI could prove to be the most impactful credit innovation yet, redefining how risk assessment is carried out in the lending ecosystem.
NDTV
18-07-2025
- Business
- NDTV
No More CIBIL Checks? New Credit Initiative Promises Faster Loans, Wider Access
The process of checking CIBIL scores before approving loans may soon change. The Department of Financial Services (DFS), under the Ministry of Finance, is working to scale up the Unified Lending Interface (ULI), a new digital lending system that could reduce reliance on traditional credit scores. 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.
Independent Singapore
17-07-2025
- Business
- Independent Singapore
New report says HDB model inspires other governments in the region
SINGAPORE: The 2025 ULI Asia Pacific Home Attainability Index report highlights how home unattainability is a problem across the globe. Housing & Development Board (HDB) homes in Singapore, however, together with flats in Melbourne, are singled out for their rent and purchase attainability, amid other cities where both renting and buying are beyond the reach of many. 'Singapore is the only capital city to offer attainable homes for purchase,' the report says. Moreover, it also shows how the HDB model of the city-state has inspired other governments, calling the ability of citizens to buy apartments at a fraction of open market rates one of Singapore's 'notable successes.' 'Across all years of the Home Attainability Index, HDB apartments have been the most attainable route to home ownership in a major Asian city, with prices consistently under five times median income. HDB apartments are also significant because of their ubiquity; they house 80% of Singapore's population. Private sector apartments and houses are typically (but not exclusively) owned by wealthy Singaporeans and rented by expats.' However, the report underlined that private homes are priced at 16.9 times the annual median household income, for an average price of US$1.7 million (S$2.18 million), making them the most expensive in the region. It noted that other countries have launched programmes that appear to follow the HDB model, including Malaysia and Thailand. The Residenci Wilayah scheme in the city-state's nearest neighbour also gives people the chance to buy homes at prices below market rates. In Thailand, meanwhile, an initiative called 'Homes for Thais' uses land belonging to the state to offer people properties with a 99-year lease. The report pointed out, however, that in countries where the government does not have the same amount of control over freehold land, conducting this type of programme is much more of a challenge than it is for the HDB. 'Meanwhile, in some jurisdictions, there are objections to the government essentially controlling the majority of the housing market. However, the most significant objection to similar schemes is the risk that they might reduce the value of existing stock, a significant factor in countries where the majority of people own their own home,' the report adds. The report even asks if Hong Kong should follow in Singapore's footsteps when it comes to homeownership. Hong Kong's Home Ownership Scheme (HOS) lets citizens purchase homes on the basis of shared ownership, where the government has a 30% stake and citizens pay 70% of the property's value. This went on from the late 1970s to 2002 and was resumed again, albeit in a limited fashion, in 2011, although a number of think tanks in the city believe that public housing tenants should be permitted to buy the housing units they rent at a subsidised rate. /TISG Read also: S$407 million boost for HDB flats, major upgrades to enhance living conditions for thousands
Time of India
16-07-2025
- Business
- Time of India
RBI reviews ULI rollout with lenders amid slow adoption
Mumbai: The Reserve Bank of India ( RBI ) leadership on Wednesday met officials of banks and non-banking finance companies to discuss the way to boost lending under the Unified Lending Interface (ULI), which is positioned as the UPI for loans. M. Nagaraju, secretary, department of financial services, and RBI deputy governor, T. Rabi Sankar, were present at the meeting. The two officials had also met last month in New Delhi to discuss scaling up ULI, which is a digital public infrastructure in the lending space and aims to unlock critical financial, non-financial and alternative data for lenders to enable informed credit decisions. Explore courses from Top Institutes in Select a Course Category Others Project Management MBA Leadership Technology PGDM Data Science Finance Operations Management Digital Marketing Artificial Intelligence Healthcare Design Thinking Data Analytics healthcare CXO Public Policy Data Science Degree Cybersecurity others Management Product Management MCA Skills you'll gain: Duration: 7 Months S P Jain Institute of Management and Research CERT-SPJIMR Exec Cert Prog in AI for Biz India Starts on undefined Get Details Skills you'll gain: Duration: 9 months IIM Lucknow SEPO - IIML CHRO India Starts on undefined Get Details Skills you'll gain: Duration: 28 Weeks MICA CERT-MICA SBMPR Async India Starts on undefined Get Details Skills you'll gain: Duration: 16 Weeks Indian School of Business CERT-ISB Transforming HR with Analytics & AI India Starts on undefined Get Details "The regulator wanted to know whether ULI is facing issues, and how to resolve them," said a person aware of the discussions. "Some lenders told the RBI that they already have the technology stack and tie-ups in place for different loan products and, hence, the integrating ULI has been slow." The person cited above also attributed a slow start to regulatory scrutiny on the type of instruments that would have been at the vanguard of the ULI, developed by the Reserve Bank Innovation Hub. "Adoption also was lower because of the overall caution among lenders, especially in the unsecured segment," said the person aware of the discussions. "Incidentally, the early use case was around small-ticket personal loans , which came under regulatory scrutiny." Live Events More than 600,000 loans amounting to ₹27,000 crore have been disbursed using the ULI platform until early-December 2024, RBI data showed. According to industry executives, the sources of lead for lenders in ULI was mainly surrounding personal loans and unsecured small-business lending, both of which dried out because of cautious lending. "Some lenders also tried supply chain financing via ULI. But that too did not take up. Lending is a growing market, hence ULI will also pick up gradually. However, there needs to be the establishment of a use case," said a senior official with a Mumbai-based NBFC. At least 36 lenders, including various banks and NBCs have been onboarded till December 2024. These lenders are using more than 50 data services including, authentication and verification services, land records data from six states, satellite service, property search, dairy insights and document verification, to gain customer information.
