With the ULI digital system, it will now be easier to get a loan even if you have a bad CIBIL score. Government, private banks and NBFC companies are participating. ULI will consider the financial behavior of the individual.
Nowadays, when it comes to taking a loan, there is tension, the reason is that if you take it through any app, there can be fraud and if you go to the bank, you have to submit 10 documents and finally, the tension of the CIBIL score. Often, difficulties arise in getting a loan. Then, at that time, the struggle starts to increase the credit score. But all this is no longer necessary. The reason is that now, no matter how bad the CIBIL score is, you will get a loan.
You don’t need to worry about CIBIL score. You just need to submit the documents properly. The dependency of getting a loan only if you have a good CIBIL score is going to end now. Government and private banks and cooperative banks, financial institutions have been directed to participate in the Unified Lending Interface platform as soon as possible.
With the new system, it will now be easier to get a loan from the bank. A digital system called ‘ULI’ has been created, which will consider all the information of the borrower. Such as house, shop, agriculture, spending capacity, income, etc., the loan will be given considering these.
What is ULI?
ULI (Unique Layered Information) is a digital system that will make the journey from applying for a loan to repaying it easier.
What about those who have never had a loan?
Earlier, it was difficult for those without a credit score to get a loan. But with the help of ULI, information about the land and crops of farmers, gig workers (those working on platforms like Zomato, Swiggy, Ola-Uber), and small vendors can also be created. Thus, a score will be created even for first-time borrowers.
Who is involved in this?
The meeting, chaired by RBI Deputy Governor T. Rabi Shankar and DFS Secretary M. Nagaraju, was attended by officials from several banks in the government, private and NBFC sectors. There were 12 government, 18 private, 3 financial and 6 NBFC companies. Till now, CIBIL score was the only basis for banks and finance companies. But now a new method of understanding the financial behavior of an individual even in the absence of CIBIL is being developed through ULI.
Now, CIBIL score alone will not be important for getting a loan. The ULI system will review a person’s income, expenses, assets, and transactions to determine their financial eligibility. So, even a common man can now qualify for a loan.