Borrower Perspective – Unified Lending Interface (ULI)

“From a solo entrepreneur to a growing startup, the borrowing journey should be as simple as paying a bill.”

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1️⃣ Who is the borrower?

Individuals – salaried employees, freelancers, gig workers.
Micro‑enterprises / Small organisations – family‑run shops, NGOs, local service providers.
Start‑ups – tech‑driven companies, agritech, health‑tech, etc.

The UI will be supporting both a personal profile and a business profile (company name, registration number, turnover, sector, etc.).

2️⃣ Mandatory KYC – Proving Identity & Existence

KYC flow always served as a way for customer verification across legal and financial bodies, and ULI will make it as simple as possible just like UPI.

Document Type	Typical Use‑Case	Example Files
PAN	Tax identification, credit check	`pan.pdf`
Aadhaar	Government‑issued ID, address verification	`aadhaar_front.jpg`, `aadhaar_back.jpg`
Voter ID / Driving Licence / Passport	Alternate proof of identity	`voter_id.pdf`
Business Registration (MSME, GST, CIN)	For organisations / startups	`gst_certificate.pdf`
Bank Statement	Income / cash‑flow proof	`bank_statement.pdf`

High‑level KYC flow (derived from NPCI UPI procedural pages 4‑57):

3️⃣ Marketplace of Lenders – Transparency vs. Confidentiality

Lender Types: Government banks, private banks, NBFCs, local financiers, fintech lenders.
What the borrower sees:
- Available loan amount range (e.g., ₹50 k – ₹5 M).
- Interest‑rate band (e.g., 8 % – 14 %).
- Eligibility criteria (credit‑score threshold, turnover, sector).
Why we hide exact rates ?: Lenders protect proprietary pricing. The UI shows a range and a “Get Quote” button that reveals the exact rate after a pre‑approval request.

4️⃣ Credit‑Score & Eligibility Engine

Self‑service Score Calculator – borrower inputs:
- Income / turnover
- Existing liabilities
- Repayment history (if any)
Simplified algorithm (illustrative only):
- Base score = 300
- + 0.2 × (annual income in ₹ 000s)
- – 0.5 × (existing EMIs / income ratio)
- + 10 × (tenure of business / 5 years)
Result: Score 300‑900, colour‑coded (Red, Amber, Green).

The real scoring model will be supplied by RBI’s “Digital Credit Scoring” sandbox.

5️⃣ Loan Disbursement & Repayment – UPI‑style APIs

ULI re‑uses the proven UPI transaction model for moving loan funds. The following JSON specifications inform the borrower‑facing flow:

5.1 Payment‑Link Creation

Endpoint: POST /api/v1/payment-links
Purpose: Generate a one‑time payment link that the borrower can click to receive the loan amount.
Key fields:
- amount
- currency
- merchantId (the lender’s identifier)
- callbackUrl (for settlement notification)

5.2 Bill‑Pay API

Endpoint: POST /api/v1/bills
Purpose: Register a loan‑repayment bill that can be settled via UPI, NEFT, or other supported modes.
Key fields:
- billAmount
- dueDate
- payerVPA (borrower’s virtual payment address)
- payeeVPA (lender’s virtual payment address)

5.3 Merchant‑Acquirer Map

Describes how a merchant (lender) is onboarded onto the UPI network and which acquirers (banks) will settle the funds.
Important for the borrower to see the settlement schedule and settlement type (Gross vs Net).

Merchant‑Acquirer flow:

Borrower‑centric flow (payment‑link → settlement):

6️⃣ Access to Government Schemes

MSME Credit Guarantee – up to 75 % of loan amount guaranteed by the government.
Startup India Fund – low‑interest loans for tech‑driven startups.
Agriculture Credit – interest subsidies for farmers & agri‑SMEs.

How it appears: A dedicated “Government Schemes” tab that filters lenders offering scheme‑backed loans, showing the subsidy percentage and eligibility.

7️⃣ Forecast & Treasury Insight (RBI View)

Optional note for the borrower: “Your loan request helps the central bank forecast credit demand and plan liquidity.”

8️⃣ App Features for the Borrower

8.1 Unified Dashboard

Loan Portfolio: Single view of all active loans across different lenders.
Action Items: Clear "To-Do" list for pending KYCs, e-sign requests, or upcoming EMI payments.
Financial Health: Real-time credit score display with history tracking.

8.2 Smart Discovery & Comparison

Lender Marketplace: Filter lenders by loan type (Personal, Business, Agri), tenure, and interest rate bands.
Smart Match: "Recommended for You" section based on the user's credit profile and business sector.
Government Schemes: Dedicated tab for subsidized loan schemes (e.g., Mudra, Startup India) with one-click eligibility checks.

8.3 Application Management

One-Time KYC: Upload documents once to the central ULI locker; share with multiple lenders via consent.
Real-time Tracking: Status timeline for each application (Submitted → Under Review → Approved → Disbursed).
In-App E-Sign: Digitally sign loan agreements using Aadhaar-based OTP.

8.4 Repayment & Treasury

Auto-Pay Mandates: Set up recurring UPI mandates or eNACH for EMIs.
Foreclosure Simulation: Calculator to see savings on early repayment.
Secure VPA: Unique virtual address (e.g., borrower_id@uli) for receiving disbursements and making repayments.

8.5 Support & Grievance

Dispute Resolution: Built-in ODR (Online Dispute Resolution) for failed transactions or incorrect charges.
Multilingual Support: Interface available in 12+ Indian languages for inclusivity.

9️⃣ API Specifications (Borrower Module)

This section outlines the core RESTful endpoints exposed to the Borrower App. These APIs interact with the central ULI switch and the connected Lender/Bureau nodes.

9.1 Identity & Onboarding

POST /api/v1/borrower/register

Initiates the user profile creation. It accepts basic details (mobile, email, name) and creates a unique ULI ID (e.g., user@uli). This ID serves as the primary handle for all future lending transactions and consent management.

POST /api/v1/borrower/kyc/upload

Handles the secure upload of identity documents (PAN, Aadhaar, etc.). The API routes these documents to the Central Document Validation Service (CDVS) for OCR and authenticity checks. It returns a transaction ID to track the verification status.

GET /api/v1/borrower/kyc/status

Polls the status of the submitted KYC documents. It returns the verification result (Verified/Rejected) from the CDVS. If rejected, it provides specific error codes (e.g., "Image Blurred", "Name Mismatch") to guide the user in re-uploading.

9.2 Credit & Eligibility

POST /api/v1/credit/eligibility-check

Triggers a real-time fetch of the borrower's credit report from connected Credit Information Companies (CICs). It calculates the "ULI Score" based on the standardized algorithm and determines if the user meets the baseline criteria to enter the marketplace.

GET /api/v1/credit/score-card

Retrieves the calculated ULI Score and a summary of the credit health. This is used to populate the "Financial Health" dashboard, showing the user their score trend, active trade lines, and any negative flags that might affect loan approval.

9.3 Marketplace & Discovery

GET /api/v1/market/lenders

Fetches a filtered list of available lenders based on the user's profile and search criteria (Loan Type, Amount, Tenure). It returns lender metadata, including their interest rate bands, processing fees, and "Success Rate" for similar profiles.

POST /api/v1/market/quote-request

Multicasts a "Pre-Approval Request" to selected lenders. It shares a masked version of the borrower's profile (Credit Score, Income, Sector) with lenders to solicit exact interest rate quotes without revealing personally identifiable information (PII) initially.

9.4 Loan Lifecycle Management

POST /api/v1/loan/apply

Submits a formal loan application to a specific lender after the borrower selects a quote. It includes the unmasked profile data and consent artifacts. This triggers the lender's internal underwriting engine (Rule Engine) for a final decision.

POST /api/v1/loan/{loanId}/accept

Captures the borrower's acceptance of the final Loan Agreement. It triggers the e-signing process (via Aadhaar OTP) and generates the "Loan Sanction Letter". Once successful, it signals the lender to initiate the disbursement process.

GET /api/v1/loan/portfolio

Retrieves the consolidated list of all active and closed loans linked to the borrower's ULI ID. It provides key details for each loan, including Outstanding Principal, Next EMI Date, Interest Rate, and a link to the repayment schedule.

9.5 Repayment & Settlement (UPI/BBPS Integration)

POST /api/v1/repayment/mandate/create

Sets up an auto-debit mandate (eNACH or UPI Autopay) for loan repayment. It redirects the user to their UPI app to authorize the recurring debit limit. This ensures EMIs are deducted automatically on the due date, reducing default risk.

POST /api/v1/repayment/pay-manual

Generates a dynamic UPI payment link or QR code for ad-hoc payments (e.g., missed EMI, part-payment, or foreclosure). It integrates with the Bharat Bill Payment System (BBPS) to instantly settle funds into the lender's collection account.

🔟 Scenario-Based API Workflows

To illustrate how the generic APIs (Section 9) adapt to specific use cases, here are the strict data flows for the three primary loan categories.

10.1 Personal Loan: Electric Vehicle (Bike) Financing

Actor: Salaried Individual | Loan Type: Vehicle Loan (Green Finance)

Profile Setup:
- Call POST /borrower/register with type: "INDIVIDUAL".
- Upload Salary Slips via POST /kyc/upload.

Discovery:

Request: POST /market/quote-request

{
  "loanType": "VEHICLE",
  "assetDetails": { "type": "EV_SCOOTER", "price": 120000, "dealerId": "HERO_01" },
  "amount": 100000,
  "tenureMonths": 24
}

Logic: The system flags this as a "Green Loan," potentially unlocking lower interest rates (e.g., 10-12%).

Disbursement:
- Upon POST /loan/{id}/accept, the loan amount (₹1L) is not sent to the borrower.
- Settlement: The system triggers a direct payment to the Dealer's VPA (hero.motors@bank) to prevent fund diversion.

10.2 Business Loan: MSME Working Capital

Actor: Small Business (Proprietorship) | Loan Type: Working Capital / Overdraft

Profile Setup:
- Call POST /borrower/register with type: "ENTITY", entityType: "PROPRIETORSHIP".
- Input GSTIN. System fetches last 12 months' turnover data automatically.

Discovery:

Request: POST /market/quote-request

{
  "loanType": "WORKING_CAPITAL",
  "businessVintage": "3_YEARS",
  "annualTurnover": 5000000,
  "requestedLimit": 500000
}

Logic: Lenders evaluate "Cash Flow" rather than just collateral.

Disbursement:
- Sanction: A Credit Line of ₹5L is approved.
- Usage: Borrower draws funds as needed via POST /loan/drawdown. Interest is charged only on the utilized amount.

10.3 Agri Loan: Kisan Credit Card (KCC)

Actor: Farmer | Loan Type: Crop Loan

Profile Setup:
- Call POST /borrower/register with type: "FARMER".
- Link State Land Records (e.g., Bhoomi/Dharani ID).
Discovery:
- Request: POST /market/quote-request
```
{
  "loanType": "AGRI_KCC",
  "cropSeason": "RABI",
  "landAcreage": 2.5,
  "crop": "WHEAT"
}
```
- Logic: System checks "Scale of Finance" for Wheat in that district to determine max loan eligibility.
Disbursement:
- Funds credited to a KCC Savings Account.
- Includes mandatory Crop Insurance deduction (Pradhan Mantri Fasal Bima Yojana).

1️⃣1️⃣ AI-Driven Intelligence Layer

The ULI platform leverages advanced Artificial Intelligence (AI) and Machine Learning (ML) to democratize credit access. This layer moves beyond static rule-based engines to dynamic, context-aware decision-making. This Decision Engine is a key differentiator of ULI. This is completely just an alternative supportive measure to the conventional credit score calculation systems. Although Money borrowers and Lenders will always have access to traditional credit scoring systems.

11.1 Holistic Credit Scoring (Beyond Bureau Data)

Traditional scores rely heavily on past repayment history. The ULI AI Engine incorporates Alternative Data to assess intent and capability.

For Individuals:
- Behavioral Analytics: Analyzes utility bill payments, e-commerce spending patterns, and savings regularity.
- Loan-Specific Risk: A home loan applicant is scored differently from a personal loan applicant based on asset stability.
For Businesses (MSMEs/Startups):
- Macro-Economic Factors: Adjusts risk scores based on real-time inflation/deflation trends and sectoral growth (e.g., boosting scores for Sunrise Sectors like EV/Solar).
- Market Sentiment: Scrapes news and social sentiment to gauge brand health.
- Stock/Commodity Correlation: For agri-traders or manufacturers, the AI analyzes raw material price volatility against their inventory.

11.2 Intelligent Lender Matching

Instead of a flat list, the Recommendation Engine pairs borrowers with the right lenders.

Risk Appetite Matching: High-risk, high-growth startups are matched with Venture Debt funds rather than conservative PSU banks.
Success Prediction: Uses historical data to predict which lender is most likely to approve a specific profile, reducing rejection fatigue.

11.3 Additional AI Use-Cases

Voice-First Interface (NLP): Allows rural borrowers to interact with the app in their native dialect (e.g., "Mujhe kheti ke liye loan chahiye"), breaking literacy barriers.
Predictive Cash-Flow Alerts: Warns businesses of potential liquidity crunches before they happen, suggesting timely working capital top-ups.
Fraud Guard: Detects synthetic identities and circular trading patterns in real-time.

AI Decision Flow:

Note: This is just a Mockup of the AI Decision Engine. The actual AI Decision Engine will be more complex and shall be based on the latest research in AI and Machine Learning.And also there is another factor ,governement bodies will not easily drop the existing credit scoring systems and switch to automated AI Decision as the primary source of truth.

1️⃣2️⃣ Next Steps (What the borrower will do after reading this doc)

Create a personal or business profile.
Upload required KYC documents.
Use the credit‑score calculator.
Browse the lender marketplace, apply for a quote.
Accept the loan offer and receive a payment‑link.
Repay via UPI, NEFT, or the in‑app bill‑pay flow.

This blueprint is intended as just a mockup and do not represent any governemt legal body or any existing system.

ULI - Unified Lending Interface - Part One

Borrower Perspective – Unified Lending Interface (ULI)

1️⃣ Who is the borrower?

2️⃣ Mandatory KYC – Proving Identity & Existence

3️⃣ Marketplace of Lenders – Transparency vs. Confidentiality

4️⃣ Credit‑Score & Eligibility Engine

5️⃣ Loan Disbursement & Repayment – UPI‑style APIs

5.1 Payment‑Link Creation

5.2 Bill‑Pay API

5.3 Merchant‑Acquirer Map

6️⃣ Access to Government Schemes

7️⃣ Forecast & Treasury Insight (RBI View)

8️⃣ App Features for the Borrower

8.1 Unified Dashboard

8.2 Smart Discovery & Comparison

8.3 Application Management

8.4 Repayment & Treasury

8.5 Support & Grievance

9️⃣ API Specifications (Borrower Module)

9.1 Identity & Onboarding

9.2 Credit & Eligibility

9.3 Marketplace & Discovery

9.4 Loan Lifecycle Management

9.5 Repayment & Settlement (UPI/BBPS Integration)

🔟 Scenario-Based API Workflows

10.1 Personal Loan: Electric Vehicle (Bike) Financing

10.2 Business Loan: MSME Working Capital

10.3 Agri Loan: Kisan Credit Card (KCC)

1️⃣1️⃣ AI-Driven Intelligence Layer

11.1 Holistic Credit Scoring (Beyond Bureau Data)

11.2 Intelligent Lender Matching

11.3 Additional AI Use-Cases

1️⃣2️⃣ Next Steps (What the borrower will do after reading this doc)