Q. Consider the following statements:
1. The Unified Lending Interface (ULI) is a digital platform that helps lenders access a customer’s financial and non-financial data.
2. ULI is expected to have a similar transformative impact on the lending landscape as Unified Payments Interface (UPI) had on the payments ecosystem.
Which of the statement(s) given above is/are correct?
Explanation –
Statements 1 and 2 are correct. ULI is a digital platform designed to facilitate the seamless flow of both financial and non-financial data from multiple sources to lenders. This platform aims to streamline the credit appraisal process by providing lenders with easy access to comprehensive customer data, thereby making lending more efficient and reducing the need for extensive documentation. ULI is anticipated to revolutionize the lending landscape in India, much like how UPI transformed the payments ecosystem. By providing a standardized, digital platform for accessing credit-related data, ULI aims to make credit more accessible, especially for underserved segments like small and rural borrowers, similar to how UPI made digital payments widely accessible and efficient. ULI uses standardized Application Programming Interfaces (APIs) that allow different financial institutions to connect easily. This “plug and play” approach simplifies the integration of diverse data sources, reducing technical complexities. Lenders gain streamlined access to comprehensive customer data, enabling more accurate credit decisions and reducing fraud risks.
Source: The Hindu
