Google Tuesday introduced a new policy for personal loan applications with the commitment of protecting consumers across Pakistan from fake and unregistered loan apps.
The new requirements, which will come into effect from May 31, will allow the Non-Banking Finance Company (NBFC) lender to publish only a single Digital Lending App (DLA). Those who attempt to publish more than one DLA will be terminated from their developer account and any other associated accounts.
The development comes days after the Federal Investigation Agency (FIA) initiated action against illegal finance companies involved in short-term online loaning following the death of an unemployed man in Rawalpindi, who died by suicide due to his inability to repay the loan.
Developers with personal loan apps targeting users in Pakistan must complete the Personal Loan App Declaration form and submit the necessary documentation before publishing their app.
They must submit proof of approval from the Securities and Exchange Commission of Pakistan (SECP) to offer or facilitate digital lending services in Pakistan. Google Play will also request additional information or documents relating to loan app compliance with the applicable regulatory and licensing requirements.
Personal loan apps operating in Pakistan without proper declaration and license attribution will be removed from the Play Store. The developers must remove the app from the Google Play Store immediately if the submitted license, registration, or declaration is no longer valid under the applicable laws.