Google has taken a firm stance to protect consumers in Pakistan from fraudulent and unregistered loan applications, introducing a new policy that aims to ensure their safety and security. Effective May 31, 2023, the policy dictates that Non-Banking Finance Company (NBFC) lenders can only publish a single Digital Lending App (DLA). Failure to comply with this requirement will result in the termination of the developer’s account and any associated accounts.
To publish a personal loan app targeting Pakistani users, developers must complete the Personal Loan App Declaration form and submit the necessary documentation. They are required to provide proof of approval from the Securities and Exchange Commission of Pakistan (SECP), demonstrating their eligibility to offer digital lending services in the country.
Furthermore, Google Play will request additional information and documents to ensure compliance with regulatory and licensing requirements for loan apps.
Any personal loan apps operating in Pakistan without the appropriate declaration and license will be removed from the Google Play Store. If the submitted license, registration, or declaration is no longer valid under the applicable laws, developers must promptly remove their app from the store.
Farhan S. Qureshi, Google’s Director for Pakistan, said:
Google is taking preventative measures by setting stringent requirements for Digital Lending Apps in order to reduce financial risk and ensure data privacy. We strongly believe that the new requirements imposed on developers of personal loan apps will provide an extra layer of protection for the users.
Under the new rules, DLAs are prohibited from accessing sensitive data, including external storage, media images, contacts, and precise location information. Additionally, apps that offer short-term personal loans, which require full repayment within 60 days from the issuance date, are not permitted.
Pakistan is among the select few countries where Google has implemented enhanced requirements for DLAs. This policy update is a significant step towards protecting consumers from deceptive financial practices and upholding data privacy.
