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Google cracks down on loan apps in Pakistan

Google cracks down on loan apps in Pakistan

Google cracks down on loan apps in Pakistan

Google cracks down on loan apps in Pakistan

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  • Google introduces a new policy in Pakistan to protect consumers from fraudulent loan applications.
  • Developers must complete the Personal Loan Application Declaration and provide the necessary documentation.
  • Google Play to request additional information to ensure compliance with regulatory requirements.
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Google has rolled out a new policy in Pakistan aimed at safeguarding consumers from fraudulent and unregistered loan apps by imposing stricter regulations on personal loan applications.

Starting May 31, 2023, the recent guidelines mandate that Non-Banking Finance Companies (NBFC) lenders can only release a single Digital Lending App (DLA). Violation of this policy by attempting to publish multiple DLAs will result in termination of the developer account and any linked accounts.

In order to publish personal loan apps targeting users in Pakistan, developers are required to fulfill certain obligations. This includes completing the Personal Loan Application Declaration form and submitting the required documentation. Additionally, they must provide proof of approval from the Securities and Exchange Commission of Pakistan (SECP) to offer or facilitate digital lending services within the country.

Google Play will now ask for further information or documents to ensure compliance with regulatory and licensing requirements specifically related to loan apps.

Personal loan apps operating in Pakistan without the necessary declaration and license will face removal from the Play Store. If the submitted license, registration, or declaration is no longer valid as per the relevant laws, developers are required to promptly remove the app from the Google Play Store.

Farhan S. Qureshi, Google’s Director for Pakistan, commented:

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“Google is taking preventative measures by setting stringent requirements for Digital Lending Apps in order to reduce financial risk and ensure data privacy. We strongly believe that the new requirements imposed on developers of personal loan apps will provide an extra layer of protection for the users.”

According to the updated regulations, Digital Lending Apps (DLAs) are prohibited from accessing sensitive data such as external storage, media images, contacts, and fine location. Additionally, apps that provide short-term personal loans with a repayment period of less than 60 days from the loan issue date are not permitted.

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