Google has imposed stricter guidelines for digital loan apps in Pakistan which include restrictions on accessing sensitive user data such as photos, videos, and contacts. The tech giant said; “We’re introducing additional requirements for personal loan apps targeting users in Pakistan. Personal loan apps in Pakistan must submit country-specific licensing documentation to prove their ability to provide or facilitate personal loans.”
SECP Approached Google Regarding Digital Loan Apps
The Securities and Exchange Commission of Pakistan (SECP), has approached Google to implement stricter laws for digital loan apps in Pakistan as certain unregulated apps are involved in malpractices with Pakistani citizens. Google has made it mandatory for every digital loan app to submit country-specific licensing documentation to prove their ability to provide or facilitate personal loans.
It should be noted that after India, Indonesia, the Philippines, Nigeria, and Kenya, Pakistan is the 6th country in the world for which Google has introduced additional requirements for digital loan apps. “Each Non-Banking Finance Company (NBFC) lender can only publish one Digital Lending App (DLA). Developers who attempt to publish more than one DLA per NBFC risk the termination of their developer account and any other associated accounts,” said Google.
Rules Introduced by Google
The additional requirements by Google include the following:
• Each NBFC can only publish one digital lending app. Developers who attempt to publish more than one app per NBFC risk the termination of their developer account and any other associated accounts.
• Complete the personal loan app declaration for Pakistan and provide the necessary documentation.
• Submit proof of approval from the SECP to offer or facilitate digital lending services in Pakistan.
• Provide additional information or documents relating to compliance with the applicable regulatory and licensing requirements.
Read more: Competition Commission of Pakistan Issues Guidelines on Avoiding Fraud While Using Loan Apps
