Google Play is introducing a new screening policy for digital lending apps in Pakistan

Google has introduced a new personal loan application policy with the aim of protecting consumers across Pakistan from bogus and unregistered loan apps.

The new requirements, which take effect on May 31, 2023, will allow the Non-Banking Finance Company (NBFC) lender to publish only one Digital Lending App (DLA). Those who attempt to publish more than one DLA will be removed from their developer account and all other associated accounts.

Developers with personal loan apps targeting users in Pakistan need it Statement Personal Loan App form and submit the necessary documentation before publishing their app. They must provide proof of approval from the Securities and Exchange Commission of Pakistan (SECP) to provide or facilitate digital lending services in Pakistan.

Google Play also requests additional information or documents related to the loan app’s compliance with applicable legal and licensing requirements.

Personal loan apps operating in Pakistan without proper statement and license grant will be removed from the Play Store. The developers must immediately remove the app from the Google Play Store if the submitted license, registration or statement is no longer valid under applicable law.

Google Play is introducing a new screening policy

Farhan S. Qureshi, Google’s director for Pakistan, said: “Google is taking preemptive measures by imposing strict requirements on digital loan apps to reduce financial risks and ensure data privacy. We are confident that the new requirements placed on developers of personal loan apps will provide an additional layer of protection for users.”

Under the new rules, a DLA is prohibited from accessing sensitive data, such as external storage, media images, contacts and fine location. While apps that offer short-term personal loans that must be fully repaid within 60 days of the loan issue date are not allowed.

Pakistan is among a small group of countries where Google has implemented additional requirements for DLAs. The new policy update is an important step towards protecting consumers from harmful financial practices and ensuring data privacy.

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