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Introduction of Unified Lending Interface to aid credit flow to SME sector

ICICIdirect Research 30 Aug 2024 DISCLAIMER

Central bank has announced introduction of Unified Lending Interface (ULI) – a consent led digital access to borrowers financial and non-financial data (including land records). Access to financial and non-financial data in a digital medium will boost confidence of lenders as it will enable faster and improved under-writing of borrower’s credit demand. 

While nation-wide launch of the interface is underway, this interface is expected to enable to benefit various stakeholders in the economy. On one hand, ULI will improve credit flow to agriculture and MSME borrowers thereby increasing financial inclusion while on the other hand it will aid business growth and yields for lenders (banks & NBFCs) along with keeping a tab on asset quality.

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