The new requirements permit Non-Banking Finance Company (NBFC) lenders to release just a sole Digital Lending App (DLA).
ISLAMABAD: Google has implemented a new policy for personal loan applications in Pakistan, with the aim of protecting consumers from frauds and unregistered loan apps.
As of May 31, 2023, the Non-Banking Finance Company (NBFC) lender can only publish a single Digital Lending App (DLA) under the new requirements. Any attempt to publish more than one DLA will result in termination from their developer account and any other associated accounts.
Developers targeting users in Pakistan with personal loan apps must complete the Personal Loan App Declaration form. Also, they are required to submit the necessary documentation before publishing their app.
They must provide proof of approval from the Securities and SECP to facilitate digital lending services in the country.
Google Play will also request additional information or documents to ensure compliance with regulatory and licensing requirements for loan apps. Google will remove any personal loan apps operating in Pakistan without the proper declaration and license attribution from the Play Store.
The developers are responsible for promptly removing the app from the Google Play Store. They should take this action if the submitted license, registration, or declaration is no longer valid under the applicable laws.
Farhan S. Qureshi, Google’s Director for Pakistan, stated that Google is taking proactive measures. The aim is to mitigate financial risk and ensure data privacy. They are achieving this by enforcing stringent requirements for Digital Lending Apps (DLAs).
Google’s New Rules for Digital Lending Apps in Pakistan
The new rules aim to provide an extra layer of protection for users. Under the updated regulations, Google prohibits DLAs from accessing sensitive data. Sensitive data includes external storage, media images, contacts, and fine location.
Moreover, Google does not allow apps offering short-term personal loans. And full repayment within 60 days from the loan issue date is not permitted.
Notably, Pakistan is among the select few countries where Google has imposed additional requirements for DLAs. This policy update represents a significant step towards safeguarding consumers from harmful financial practices and preserving data privacy.
