Google has announced a new personal loan application policy to protect Pakistani consumers from fake and unregistered loan applications.
The Non-Banking Finance Company (NBFC) lender is only allowed to publish a single Digital Lending App (DLA) under the new rules, that take effect on May 31, 2023. Anybody who tries to publish more than one DLA will have their developer account and all related accounts eliminated.
Before releasing their app, developers of personal loan apps with users in Pakistan must fill out the Personal Loan App Declaration form and submit the required documentation. The Securities and Exchange Commission of Pakistan (SECP) must have authorized them before they may provide or support digital lending services in Pakistan.
In addition, Google Play will ask for more details or proof proving that the lending app complies with all necessary legal and licensing standards.
The Play Store will remove any personal loan apps functioning in Pakistan without the required publication and license attribution. If the filed license, registration, or declaration is no longer proper under the relevant regulations, the developers must remove the program from the Google Play Store right away.
Google’s Pakistan Director, Farhan S. Qureshi, stated:
To lower financial risk and ensure data privacy, Google is taking proactive action by imposing rigorous standards for Digital Lending Apps. We are sure that the additional protection customers will receive from the new standards placed on personal loan app makers will be significant.
A DLA is forbidden by the new set of rules from accessing sensitive data, including external storage, media images, contacts, and precise position. Apps that offer short-term personal loans that must be repaid in full within 60 days of the loan’s issuance date are not permitted.
One of the few countries where Google has added more DLA requirements is Pakistan. The new policy modification is a big step toward protecting customers from risky financial practices and ensuring data privacy.