Google Play Store introduces new policy to tackle fake loan apps

California: Google Play Store has introduced a new policy aimed at safeguarding users across the country from unregistered and deceptive loan applications.

The policy, effective from May 31, permits non-bank financial firms, like the In-App Digital Lending (DIL) companies, to publish only one digital lending app.

In a warning, Google Play Store stated that any attempt by a company to publish more than one DIL app will result in the termination of all their developer accounts.

Developers of any loan applications must now submit a Personal Loan App Declaration Form before launching, along with collecting required and essential documents.

For lending digital loans or facilitating financial services in Pakistan, developers are mandated to provide proof of approval from the Securities and Exchange Commission of Pakistan (SECP).

Additionally, Google Play Store may request additional information or documentation related to regulatory licensing requirements for such applications.

Unlicensed or undeclared loan applications without documentation will be removed from the Play Store throughout the country.

Regarding the new policy, Google's Director for Pakistan, Farhan As Essa Qureshi, said that Google aims to minimize financial risks and ensure data privacy, hence the stringent conditions for digital lending apps.

Farhan As Essa Qureshi stated, "We are confident that the new terms imposed on developers of Personal Loan Apps will provide users with extra protection."

Under the new regulations, DIL apps are prohibited from accessing sensitive data, such as external storage, media images, contacts, and precise location information.

It is important to note that approval for such loan applications requiring full repayment within 60 days is not permissible.