When the Unified Payments Interface (UPI) was launched in 2016, it quietly set off one of the biggest financial revolutions in India’s history. From street vendors to large enterprises, UPI reshaped how money moves—making cashless payments fast, free, and universal.
Nearly a decade later, India is preparing for its next fintech transformation—this time in lending. The Unified Lending Interface (ULI) is emerging as a powerful digital framework that promises to do for credit what UPI did for payments: make it instant, inclusive, and data-driven.
From Paperwork to Real-Time Credit
Traditional lending in India has long been slowed by paperwork, collateral requirements, and lengthy approval cycles. ULI aims to change that completely.
Under the ULI model, real-time digital data becomes the basis of trust. Instead of physical documents, lenders assess creditworthiness using verified digital footprints such as:
◆UPI transaction history
◆FASTag toll payments
◆GST-linked business data
◆Travel and mobility patterns
The result? Loans that once took weeks can now be approved within hours—or even minutes, particularly for short-term working capital needs.
When Data Becomes Collateral
ULI has the potential to be a game-changer for MSMEs, gig workers, transport operators, and the informal sector—groups that often struggle to access formal credit due to lack of traditional collateral.
For example:
A truck driver’s FASTag usage and route frequency can reflect steady income
A small retailer’s GST and UPI data can reveal real cash flows
A service provider’s transaction patterns can demonstrate business continuity
By analysing such indicators, lenders can make more accurate risk assessments, enabling quicker approvals and potentially fairer interest rates.
Why Timely Credit Matters on the Ground
According to Umesh Revankar, Executive Vice-Chairman of Shriram Finance, timely access to small-ticket loans can make or break livelihoods at the grassroots level.
“A working vehicle, uninterrupted supplies, or emergency liquidity often depends on when credit arrives—not just how much,” he notes. Platforms like ULI, he believes, are uniquely positioned to recognise this time value of credit.
Faster Disbursals, Lower Risk
Another key advantage of ULI is greater transparency and reduced fraud risk. Since lending decisions are based on authenticated digital data:
●KYC becomes faster
●Income assessment is more accurate
●End-use verification improves
This efficiency not only benefits borrowers but also helps lenders reduce non-performing asset (NPA) risks, strengthening the overall financial system.
Building a UPI-Style Lending Ecosystem
Just as UPI succeeded due to its open, interoperable architecture, ULI is being designed as a shared digital layer where banks, NBFCs, fintech firms, and regulators can collaborate seamlessly.
If executed well, ULI could significantly narrow India’s long-standing credit gap—especially for MSMEs and the gig economy that form the backbone of employment and growth.
The Privacy Question
However, data-led lending also raises important questions around privacy, consent, and cybersecurity. Experts caution that ULI’s success will depend on:
●Clear user consent frameworks
●Purpose-limited data usage
●Strong regulatory oversight
Without these safeguards, innovation risks losing public trust.
The Road Ahead
UPI democratised payments. ULI now has the chance to democratise credit.
If real-time data, responsible lending, and robust governance move forward together, ULI could redefine how India accesses capital—making loans faster, cheaper, and more inclusive, while unlocking growth at the grassroots.
India’s next fintech revolution may not be about moving money—but about unlocking opportunity.
