ISLAMABAD: Google has introduced a new screening policy for personal loan applications in Pakistan to protect users from fraudulent and unregistered loan apps. Effective May 31, the policy states that only one Digital Lending App (DLA) can be published by Non-Banking Finance Companies (NBFC), and developers attempting to publish multiple DLAs will face termination of their accounts and associated accounts.
This action by Google follows recent measures taken by the Federal Investigation Agency (FIA) against illegal finance companies involved in short-term online lending. The decision was prompted by the tragic suicide of an unemployed man in Rawalpindi who was unable to repay a loan.
To publish personal loan apps targeting Pakistani users, developers must complete the Personal Loan App Declaration form and provide the necessary documentation. They are also required to submit proof of approval from the Securities and Exchange Commission of Pakistan (SECP) to offer or facilitate digital lending services in the country.
Google Play
Google Play will request additional information or documents regarding loan app compliance with regulatory and licensing requirements. Personal loan apps operating without proper declaration and licensing will be removed from the Play Store. If the submitted license, registration, or declaration becomes invalid under applicable laws, developers must promptly remove their apps.
Farhan S Qureshi, Google’s Pakistan director, emphasized that the new requirements for Digital Lending Apps aim to reduce financial risk and ensure data privacy, providing an extra layer of protection for users.
Under the updated rules, DLAs are prohibited from accessing sensitive data such as external storage, media images, contacts, and fine location. Short-term personal loan apps requiring full repayment within 60 days from the loan issue date are not permitted.
Pakistan is among the few countries where Google has implemented additional requirements for DLAs. This policy update is a significant step towards safeguarding consumers from harmful financial practices and preserving data privacy.
