Worried Your Low Credit Score Will Block Your Loan? Here’s How This Upcoming Government Lending Method Will Make CIBIL Score Irrelevant

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New Delhi: The Ministry of Finance is getting ready to launch a new digital lending system called the Unified Lending Interface (ULI), NDTV reported. This system could change the way personal loans and credit cards are approved by removing the need for traditional credit score checks.

The Department of Financial Services (DFS) is leading this project. The goal is to make lending easier, more transparent, and available to more people by using data, rules, and technology together.

ULI Will Use Different Types of Data

Instead of relying only on credit scores from companies like CIBIL or Equifax, ULI will use other information to decide if someone can get a loan. This includes things like utility bill payments and GST returns. This way, people like small business owners, farmers, and others without credit scores can get access to loans more easily.

Government Is Pushing for Fast Rollout

The Reserve Bank of India, and other government departments have met to speed up ULI’s roll out across banks and financial companies. These institutions need to regularly report how quickly they are adopting ULI, and those who aren’t part of the system yet are asked to join soon.

Key Features of ULI:

Sharing data only with your consent, to protect privacy.

Simple technology to connect all lenders smoothly.

Using new ways to check people’s credit, making loans available to more groups.

Helping lenders lower costs and work more efficiently.