ULI - Unified Lending Interface - Part Two
A schematic mockup documentation and representation of how ULI shall function from a lender persepctive
Lender Perspective – Unified Lending Interface (ULI)
ULI is the national‑level credit‑distribution rail that brings the same openness, interoperability and instant‑settlement experience of UPI to the world of loans. For lenders like banks, NBFCs, fintechs, cooperatives, and government‑backed funds. ULI shall provide a regulatory‑compliant, data‑rich dashboard that streamlines onboarding, risk assessment, scheme participation, and portfolio management while preserving auditability and security.
“A lender on ULI is not just a capital provider; it is a trusted node in a national credit‑distribution network.”
1️⃣ Who Is the Lender?
ULI shall support wide range of financial entities, each with distinct products and risk appetites:
- Banks – Central, State and Private banks (large ticket sizes, deep balance‑sheet capacity).
- NBFCs – Non‑Bank Financial Companies (micro‑finance, MSME credit, niche consumer loans).
- FinTech Lenders – Digital‑first platforms that partner with a bank for settlement.
- Co‑operatives / Credit Societies – Community‑based lenders serving specific regions or occupations.
- Government‑backed Funds – Entities such as the Startup India Fund or PM‑Kisan that provide subsidised or guaranteed credit.
Each participant sees a customised UI that surfaces the data and controls most relevant to its business model while sharing a common API contract with the ULI core.
2️⃣ Mandatory Registration & NPCI Verification
Before a lender can appear in the marketplace, it must satisfy a two‑step onboarding process mandated by the Reserve Bank of India and NPCI:
- Document Submission – Upload registration certificate, PAN, GST (if applicable), and optional professional liability insurance. All files are stored encrypted and referenced by secure URLs.
- NPCI Review – An automated validation service checks authenticity (OCR + digital signature verification) and queues the request for manual NPCI approval. Upon approval, NPCI issues a Lender Verified Token (LVT) that must be presented in every subsequent API call.
| Document | Why It’s Needed |
|---|---|
| Registration Certificate | Proves the entity is a licensed lender under NPCI rules |
| PAN Card | Tax identification and AML compliance |
| GST Certificate (if applicable) | Confirms business registration for GST‑registered entities |
| Insurance Policy (optional) | Provides coverage for professional liability |
NPCI Verification Flow
3️⃣ Field‑Collection Officer (FCO) of Lender's Registry
NPCI’s Field‑Collection Officer's requirement ensures lenders maintain a ground‑level verification network for borrowers lacking digital footprints.
- Why it matters: FCOs can physically verify address, land‑records, and collateral, dramatically reducing fraud in rural and semi‑urban markets.
- UI Features: Searchable, paginated table with Add / Edit / Deactivate actions, status badges (Active / Inactive), and a one‑click OTP verification to the officer’s mobile.
| Field | Type | Example |
|---|---|---|
fcoId | UUID | fco-123e4567‑89ab‑cdef‑0123‑456789abcdef |
name | String | Anita Sharma |
mobile | E.164 | +91‑9876543210 |
region | Enum (North, South, East, West, Central) | North |
idProofUrl | URL (encrypted storage) | https://s3.amazonaws.com/uli-fco/adhar.pdf |
4️⃣ Loan Request Lifecycle (Lender View)
When a borrower initiates a quote‑request, the request is routed to every lender that matches the borrower’s filter criteria (loan type, amount range, region). The lender’s dashboard then guides the user through a four‑stage workflow:
- Ingestion – Request appears in the “Incoming Requests” pane with a masked borrower snapshot and NPCI credit score.
- Risk Assessment – Review full borrower profile, run the internal Eligibility Engine, and optionally invoke AI‑enhanced scoring.
- Scheme Matching – AI suggests applicable government schemes and displays potential subsidy/guarantee percentages.
- Decision & Disbursement – Approve (generating a contract and disbursement instruction) or reject (with a structured reason code). Approved loans trigger a disbursement contract that the borrower can accept via a digital signature.
End‑to‑End Flow
5️⃣ Eligibility & Credit‑Scoring Engine (Lender Side)
NPCI supplies a baseline credit score, but lenders can typically augment this with proprietary risk factors:
| Factor | Description | Weight in Composite Score |
|---|---|---|
| NPCI Credit Score | Official score from the NPCI sandbox | 40 % |
| Collateral Coverage | Ratio of pledged asset value to loan amount | 25 % |
| Cash‑Flow Ratio | GST‑reported turnover vs. EMI burden | 20 % |
| FCO Verification | Binary flag indicating field‑officer sign‑off | 15 % |
The Eligibility Engine (a micro‑service) pulls the NPCI score , applies the lender‑specific weighting, and returns a composite risk rating (0‑100) visualised as a traffic‑light indicator (Red / Amber / Green).
Sample request payload (mirroring the neighbouring OpenAPI spec):
{ "borrowerId": "B001", "NPCIScore": 720, "collateralValue": 800000, "loanAmount": 500000, "cashFlowRatio": 0.35, "fcoVerified": true }
Sample response
{ "compositeScore": 84, "riskLevel": "GREEN", "recommendation": "APPROVE" }
Lenders may manually override the recommendation; any deviation is logged for audit.
6️⃣ Government‑Scheme Matching
ULI automatically aligns loan requests with applicable government schemes. The AI‑driven matcher evaluates:
- Borrower’s sector (Agri, MSME, Startup, Green Vehicle)
- Loan size & tenure
- Geographic eligibility (state‑level subsidies)
It returns a ranked list of schemes, each with subsidy/guarantee percentage, eligibility criteria, and a direct API endpoint for enrolment.
| Scheme | Eligibility | Subsidy / Guarantee | API Endpoint |
|---|---|---|---|
| MSME Credit Guarantee | MSME turnover < ₹5 Cr | 75 % guarantee | /scheme/msme-guarantee |
| Startup India Fund | Recognised startup, < ₹10 Cr | 5 % interest subsidy | /scheme/startup-fund |
| Kisan Credit Card | Farmer with verified land record | 30 % interest subsidy | /scheme/kcc |
| Green Vehicle Loan | EV purchase, VIN verified | 10 % subsidy | /scheme/green-vehicle |
A single click “Accept Scheme” tags the loan contract and updates the repayment schedule to reflect the subsidy.
7️⃣ Disbursement & Repayment APIs (Lender‑Facing)
All interactions are RESTful JSON, secured with JWTs that embed the Lender‑Verified Token. The core endpoints (mirroring the OpenAPI spec of the neighbouring UPI provider) are:
| # | Method | Endpoint | Purpose | Sample Request | Sample Response |
|---|---|---|---|---|---|
| 8.1 | POST | /api/v1/lender/{lenderId}/requests/{requestId}/decision | Approve / reject a loan request | { "decision":"APPROVE", "remarks":"All checks passed" } | { "status":"APPROVED", "contractUrl":"https://.../contract.pdf" } |
| 8.2 | POST | /api/v1/lender/{lenderId}/disburse | Initiate fund transfer to borrower’s VPA | { "loanId":"L123", "amount":500000, "toVPA":"borrower_001@uli" } | { "disbursementId":"D456", "status":"INITIATED" } |
| 8.3 | POST | /api/v1/lender/{lenderId}/repayment/notify | Receive repayment confirmation from UPI/NEFT | { "loanId":"L123", "amount":25000, "date":"2025-12-10" } | { "status":"RECEIVED", "outstanding":475000 } |
| 8.4 | GET | /api/v1/lender/{lenderId}/portfolio | List active loans, exposure, and scheme participation | – | { "totalExposure":12_500_000, "byType":{ "Agri":5, "SME":3, "Motor":4 } } |
All endpoints return standardised error objects (code, message, details) that map to NPCI‑mandated error‑handling guidelines.
8️⃣ Portfolio Dashboard & Analytics
The lender’s dashboard aggregates real‑time data into a single‑pane‑of‑glass view:
- Heat‑Map – Geographic distribution of active loans, colour‑coded by risk level.
- Risk‑Exposure Chart – Stacked bar showing Approved, At‑Risk, and Defaulted proportions.
- Upcoming Repayment Timeline – Gantt‑style visual highlighting due dates within the next 30 days.
- Scheme Utilisation – Pie chart indicating the share of loans backed by each government scheme.
All visualisations use vanilla CSS with glass‑morphism effects (blurred background, subtle gradients) to meet the “premium” aesthetic. Hovering over any element triggers a micro‑animation (scale‑up, shadow) and a tooltip with deeper metrics.
9️⃣ Notifications & Alerts
Timely alerts keep lenders proactive. The system pushes notifications through three channels (in‑app, email, SMS) based on the lender’s preferences:
| Trigger | Channel | Example Message |
|---|---|---|
| New loan request | In‑app banner + Email | “📩 New loan request ₹5 L from Borrower B001 (Agri) – view now.” |
| Credit‑score drop | SMS | “⚠️ Borrower B001’s NPCI credit score fell to 420.” |
| Scheme eligibility change | Push notification | “✅ New scheme Startup India now matches loan L123.” |
| Repayment due (≤ 3 days) | In‑app banner | “🗓️ Repayment of ₹25 k due in 2 days for loan L456.” |
Each alert includes a quick‑action button (e.g., “View Request”, “Mark as Read”) and a unique ID for traceability in audit logs.
🔟 AI / ML Integration for Lenders
ULI embeds three core AI services that lenders can enable (or keep disabled) from the Settings page:
- Credit‑Score Enrichment – Gradient‑Boosted Tree model fuses the NPCI score with lender‑specific data (collateral, cash‑flow, FCO verification) to produce a composite risk rating.
- Scheme‑Fit Predictor – Multi‑label XGBoost model evaluates a loan request against all active government schemes and returns a ranked list with confidence scores.
- Fraud‑Guard – Auto‑encoder monitors repayment patterns and flags anomalies (e.g., sudden spikes in early repayments followed by a default) for manual review.
1️⃣1️⃣ Importance Matrix (Risk vs Business Value)
| Feature | Risk (1‑5) | Business Value (1‑5) | Priority |
|---|---|---|---|
| NPCI Verification Workflow | 4 | 5 | High |
| FCO Registry | 2 | 4 | Medium |
| AI‑Driven Eligibility Engine | 3 | 5 | High |
| Government‑Scheme Matcher | 2 | 5 | High |
| Real‑time Repayment Alerts | 3 | 4 | Medium |
| Notification Preferences | 1 | 3 | Low |
| Dynamic Pricing Engine | 2 | 4 | Medium |
| Portfolio Stress‑Testing | 3 | 4 | Medium |
| Co‑Lending Marketplace | 4 | 5 | High |
| Automated Compliance Reporting | 2 | 4 | Medium |
| Embedded KYC/AML Screening | 3 | 4 | Medium |
| Customizable SLA Alerts | 2 | 3 | Low |
| White‑Label Branding | 1 | 3 | Low |
| Loan‑Product Builder | 2 | 4 | Medium |
| Real‑Time Cash‑Flow Forecast | 3 | 4 | Medium |
| Digital Signature & e‑Notarisation | 2 | 5 | High |
1️⃣2️⃣ Next Steps for Lender On‑boarding
- Register lender via lender portal and upload the required documents.
- Complete NPCI verification – wait for the Lender‑Verified Token.
- Populate the FCO list through the Field‑Collection Officer UI.
- Configure scheme preferences (select which government schemes the lender wishes to participate in).
- Integrate disbursement & repayment APIs with the lender’s core banking system (or use ULI’s sandbox for testing).
- Enable AI modules (optional – contact the AI‑team for model‑tuning).
- Activate extra features (Dynamic Pricing, Co‑Lending, Stress‑Testing, etc.) from the Advanced Settings page.
- Go live – start receiving borrower quote‑requests and manage the loan lifecycle from the dashboard.
A detailed checklist is provided in the appendix of the final PDF.
1️⃣3️⃣ References
- Ministry of Finance – Government Loan Scheme Catalog 2025.
- OpenAPI spec of an existing UPI provider project (used as a template for request/response schemas).
UPI vs. ULI – High‑Level Comparison
| Aspect | UPI (Payments) | ULI (Lending) |
|---|---|---|
| Primary Transaction Type | Instant fund transfer between VPAs | Loan request, approval, disbursement, repayment |
| Participants | Banks, PSPs, merchants, consumers | Banks, NBFCs, fintech lenders, cooperatives, government funds |
| Regulatory Oversight | NPCI (payment systems) | NPCI (lender registration, KYC, AML) + Ministry of Finance (scheme compliance) |
| Core API Model | pay, request, status – synchronous, sub‑second latency | Multi‑stage workflow (quote‑request, eligibility, scheme‑match, approve, disburse) – asynchronous, event‑driven |
| Data Sharing | Minimal (only transaction metadata) | Rich borrower profile, credit score, collateral, scheme eligibility, repayment history |
| Security | Two‑factor authentication, device binding | JWT + Lender‑Verified Token, field‑officer verification, AML screening |
| Settlement Layer | Immediate UPI settlement via NPCI | Disbursement via UPI/NEFT/BBPS, optional escrow, scheme‑backed guarantees |
| Governance | Open API, standardised message format (ISO 20022) | Open API + extended schemas for loan‑specific data, AI/ML services |
| User Experience | Simple “Pay” UI, 1‑click flow | Dashboard with risk analytics, scheme matching, portfolio management |
| Compliance Reporting | Transaction logs for audit | Periodic NPCI reports (exposure, NPA, scheme utilisation) generated automatically |
| Innovation Scope | New payment methods (QR, UPI‑ID) | Dynamic pricing, co‑lending, stress‑testing, AI‑driven eligibility, white‑label branding |
This Document is just a mock architecture of a "Could be" lending app. This does not mimick or represent any real world lending app.