According to new policies, Loan App developers must submit proof of approval from the Securities and Exchange Commission of Pakistan (SECP) to offer lending services in Pakistan
Google has finally launched a new policy against loan applications in Pakistan, making it almost impossible for any fake or unregistered loan application to be available on the platform.
Committed to protecting consumers, Google’s new policy allows Non-Banking Finance Company (NBFC’s) to have only one Digital Lending App (DLA), adding that any NBFC found having more than one DLA will immediately get their developer account terminated.
As per new Google requirements, loan apps targeting users in Pakistan will also have to fill out a Personal Loan App Declaration form, submit a series of documents alongside a lending service approval from the Securities and Exchange Commission of Pakistan (SECP).
Apart from these documents, Google may even request additional documents and information regarding the loan application and check its compliance with relevant authorities before allowing it to be on the PlayStore.
“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,” said Google’s Director for Pakistan, Farhan S. Qureshi.
According to the new rules, all DLA’s operating in Pakistan will not be allowed to access personal data including external storage, media images, contacts, and fine location; all of which was being used as a key blackmailing tool for extortion of loans.
Lending applications which offer short-term personal loans and demand repayment in 60 days are no longer allowed to be on the Play Store.
The new Google policy is a great step towards consumer protection and will definitely protect users against malpractices.