Google has recently introduced a screening policy for personal loan applications in Pakistan to protect consumers from fake and unregistered loan apps. Starting from May 31, 2023, Non-Banking Finance Company (NBFC) lenders will only allowed to publish a single Digital Lending App (DLA). Violating this policy by attempting to publish more than one DLA will result in termination of the developer account and associated accounts.
To publish a personal loan app targeting Pakistani users, developers must complete the Personal Loan App Declaration form and submit the required documentation. They also required to provide proof of approval from the Securities and Exchange Commission of Pakistan (SECP) to offer or facilitate digital lending services in the country.
Google Play will request additional information and documents to ensure compliance with regulatory and licensing requirements for loan apps. Any personal loan app, operating in Pakistan without proper declaration and license attribution will removed from the Play Store. Developers must promptly remove their app from the Google Play Store if their submitted license, registration, or declaration becomes invalid under the applicable laws.
Farhan S. Qureshi, Google’s Director for Pakistan, emphasized that these new requirements for Digital Lending Apps aim to mitigate financial risks and safeguard data privacy. By imposing stricter guidelines, Google aims to provide an extra layer of protection for users.
According to the new rules, DLAs prohibited from accessing sensitive data such as external storage, media images, contacts, and fine location. Additionally, apps offering short-term personal loans requiring full repayment within 60 days from the loan issue date not permitted.
Pakistan is one of the select few countries where Google has implemented additional requirements for DLAs. This policy update signifies a significant step towards safeguarding consumers from harmful financial practices and ensuring data privacy.