India’s digital financial system is expanding from payments to credit access. According to the Government of India, UPI had 55.49 crore users by June 2026 and processed 24,161.69 crore transactions in FY2025–26, showing the reach of the digital network behind everyday financial activity.
This article will explain how UPI, Account Aggregator, and ULI are changing credit access while raising important questions on privacy, transparency, and user protection.
How has the UPI changed financial behaviour?
UPI has made digital payments a regular part of everyday life. Users can transfer money and pay merchants directly from their bank accounts through mobile apps, streamlining real-time financial services. This shift has elevated digital-first loan applications and financial services.
UPI is primarily a payment system. Under RBI’s Credit Line on UPI system, an eligible user can use a credit line already sanctioned by a bank as a funding source for UPI transactions.
What does Account Aggregator lending do?
The account aggregator system lets users share selected financial information with an authorised institution after providing consent. It simply transfers the requested information based on the user’s instructions and does not provide loans, calculate credit scores, or approve loan applications.
This system helps a salaried or self-employed applicant share structured bank information without repeatedly downloading and uploading statements. According to Sahamati’s FY2026 impact report, Account Aggregator-enabled lending facilitated an estimated ₹3.82 lakh crore in disbursals across 3.68 crore loans.
How does ULI connect data and credit?
The Unified Lending Interface is standardizing the digital systems that connect lenders with participating financial and non-financial data services.
The main components of the growing digital credit infrastructure serve different purposes:
| Component | Primary role |
| UPI | Processes real-time payments |
| Account Aggregator | Shares selected financial data with consent |
| ULI | Connects lenders with participating data services |
| Regulated lender | Assesses risk and decides the loan terms |
According to the Government of India, ULI had onboarded more than 20 NBFCs by December 2025. They were using more than 136 data services across 12 loan journeys. Available services included authentication, land-record, and satellite-data services, while expansion towards Regional Rural Banks and District Central Co-operative Banks was also planned.
Can digital infrastructure expand credit access?
Digital infrastructure can give lenders more verified information to assess applicants. It does not guarantee approval, a lower interest rate, or faster disbursal. In a digital loan journey, applicants provide consent, approved channels verify relevant information, and the lender decides eligibility, amount, rate, and tenure.
Before applying, borrowers can use CredBuddha’s Loan Eligibility Calculator to check possible loan amount based on income and existing EMIs.
The Government of India’s financial-inclusion review notes that AI-based assessment may use authorized information such as digital transactions, GST filings, bank statements, and utility payments. Alternative credit assessment can help lenders analyze a borrower’s cash flow when credit records are limited.
According to Sahamati, new-to-credit borrowers accounted for 18.2% of AA-enabled loans by volume, while women accounted for 19.8%.
Why must speed be balanced with safety?
Digital loan applications can reduce paperwork, but borrowers should still review the terms carefully. According to a July 2026 Ministry of Finance update, the RBI (Digital Lending) Directions, 2025 include requirements covering data privacy, recovery practices, and customer grievance redressal. Furthermore, the RBI’s Digital Lending Apps directory has operated since 1 July 2025 to help users verify an app’s claimed association with a regulated entity.
Before accepting a digital loan, borrowers should:
● Verify the bank or NBFC behind the application;
● Read the Key Fact Statement and compare the annual percentage rate, fees, EMI, tenure, and total repayment;
● Review requested data permissions and avoid unnecessary access; and
● Use official grievance or cybercrime channels if an application appears fraudulent.
CredBuddha is a loan comparison platform, not a lender. Borrowers can use CredBuddha to check eligibility and compare available offers.
India’s digital credit infrastructure: What comes next
Account Aggregator allows consent-based data transfer; ULI connects lenders with data providers, and UPI allows digital payments. When combined, they can support digital lending in India. CredBuddha is a comparison platform that helps Indian borrowers check eligibility and compare loan offers; it is not a lender.
FAQ
1. What is the difference between UPI, Account Aggregator, and ULI?
UPI processes payments, Account Aggregator enables consent-based data sharing, and ULI connects lenders with participating data services.
2. Is Credit Line on UPI the same as a digital loan?
No. It allows eligible users to make UPI payments from a credit line already sanctioned by a bank under the RBI framework.
3. How can borrowers verify a digital lending app?
Borrowers can check the app’s association with a regulated entity through RBI’s Digital Lending Apps directory.
4. Can alternative data help new-to-credit borrowers?
It may help lenders assess cash flow using permitted bank, GST, utility, or transaction data, but it does not guarantee approval.
5. Is CredBuddha a lender?
No. CredBuddha is a comparison platform that helps borrowers check estimated eligibility and compare loan offers from lending partners.
