- By Aditya Pratap Singh
- Tue, 27 Aug 2024 05:11 PM (IST)
- Source:JND
Unified Lending Interface: The Reserve Bank of India (RBI) has decided to make the loan approval process easier as it is set to launch the Unified Landing (ULI) platform, which is a platform like UPI, following which people will not need to visit banks for a car, personal or home loan.
Shaktikanta Das, RBI governor, made the announcement. He said that last year (August 2023), the Reserve Bank launched a pilot project of a technical platform for frictionless credit. The platform focused on Kisan Credit Card Loan, Dairy Loan, MSME Loan, Personal Loan, and Home Loans in its first year of operation.
RBI to have control over the lending app
The government and the RBI have limited control over the existing apps providing instant loans, but with the help of the ULI platform, the government will directly monitor the best and most authentic apps. As per RBI, taking a loan will be as simple as making a payment using UPI. We make payments by entering the PIN, in the same way, people will be able to take a loan by entering the PIN. The ULI will also be linked with the bank account.
ULI will simplify credit processing
The Unified Landing Interface (ULI) is designed to simplify the entire loan process and reduce the time and paperwork involved in credit processing. It combines open architecture with an open application programming interface (API) so that financial institutions can easily connect in a 'plug and play' model.
How the Unified Lender Interface will work?
The ULI app will collect data from various sources including AADHAAR, e-KYC, state government land records, PAN validation, and account aggregators. It will also be linked with services such as milk data from dairy cooperatives and home or property search data.
Shaktikanta Das said that the Unified Payment Interface (UPI) was launched by the National Payments Corporation of India (NPCI) in April 2016. UPI has achieved a lot of success in its 8-year journey.
In July 2024, 1,444 crore transactions were done through a Unified Payment Interface i.e. UPI. During this period, a total amount of Rs 20.64 lakh crore was transferred.
How does UPI work?
For UPI service, you have to create a virtual payment address. After this, it has to be linked to the bank account. After this, you don't need to remember your bank account number, IFSC code, etc. The person making the payment simply processes the payment request according to your mobile number.