Google has implemented a new regulation for personal loan applications in order to protect consumers in Pakistan from fake and unregistered lending apps.
Google Rules Against Loan Apps In Pakistan
The new rules, which go into effect on May 31, 2023, allow Non-Banking Finance Company (NBFC) lenders to publish only one Digital Lending App (DLA). Those who attempt to publish more than one DLA will have their developer account and any other related accounts deleted.
Before publishing their app, developers with personal loan apps aimed at Pakistani customers must complete the Personal Loan App Declaration form and provide the required documentation. To offer or enable digital lending services in Pakistan, they must provide proof of clearance from the Securities and Exchange Commission of Pakistan (SECP).
Google Play will additionally request further information or documentation to ensure that the lending app complies with all applicable regulatory and licensing requirements.
Personal loan apps that are not properly declared and licensed in Pakistan will be withdrawn from the Play Store. If the filed license, registration, or declaration is no longer legitimate under the applicable legislation, the developers must remove the program from the Google Play Store immediately.
A DLA is not permitted to access sensitive data, such as external storage, media photos, contacts, or fine location, under the new set of guidelines. Apps that offer short-term personal loans that require payback in full within 60 days of the loan issue date, on the other hand, are not permitted.
Pakistan is one of a small number of countries where Google has imposed additional DLA requirements. The new regulation revision is an important step toward protecting customers from hazardous financial practices and maintaining data privacy.
See More: PTA Bans 40+ Loan Apps After Many Scam Incidents
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