UPI Tips: Taking a loan will be as easy as making a payment through UPI, RBI has made arrangements..
Right now the process of taking a loan is still very complicated. You have to complete all the paperwork. You have to visit banks daily. But, the government is now going to make this process very easy. Reserve Bank (RBI) Governor Shaktikanta Das has announced to bringing Unified Lending Interface (ULI) platform like payment app UPI.
RBI launched a pilot project of a technical platform last year (August 2023) to provide frictionless credit i.e. easy loans. During the one-year pilot project, the central bank focused on Kisan Credit Card (KCC) loans, dairy loans, MSME loans, personal loans, and home loans, which are in high demand.
What will be the benefit to consumers?
Even now many apps claim to give instant loans. But, RBI's control over them is very limited. These apps are also accused of arbitrariness and mental harassment at times. But, if RBI keeps a direct eye on the apps with the ULI platform, then the scope of any disturbance will also be less. This will make loan appraisal much easier, especially for rural and small consumers.
How will it be easier to get a loan?
The entire process of getting a loan from the Unified Lending Interface (ULI) will be easy. It is designed to reduce the time and paperwork taken in credit processing. It combines open architecture with an open application programming interface (API). Because of this, financial institutions can easily join in the 'plug and play' model.
How will the ULI platform work?
The ULI app will collect data from different sources including Aadhaar, e-KYC, state government land records, PAN validation, and account aggregators. It will also be linked with services like milk data from dairy cooperatives and house or property search data. Just like you make payment in UPI by just entering the PIN, in the same way, if you are eligible, you will be able to take a loan by entering the PIN.
Will ULI be as successful as UPI?
The Unified Payment Interface (UPI) was launched in April 2016. In its 8-year journey, UPI has transformed the world of digital payments. You will find QR code scanners installed everywhere from paan shops to vegetable carts. Many other countries have also adopted the UPI model. To replicate the success of UPI, ULI will have to provide the same experience to the users.
