Google pulls the plug: 3500 Loan apps banned from India's play store

Delhi : On the Google Play Store, there are an excessive number of apps that offer to make loans, but not all of them are reliable. Additionally, using these apps improperly and without proper authorization can occasionally get users into trouble. According to the Play Protect report, Google has taken action against more than 3,500 lending applications in India throughout 2022 for violating the Play Store's policies in order to protect consumers from downloading these types of apps. Google has consequently taken these apps off of its app store.

Google revised its guidelines for Indian financial services applications in 2021, including those that provide personal loans. In September 2021, this regulation becomes operative. The Reserve Bank of India required app developers to confirm their authorization to offer personal loans and to produce a copy of their authorization. If they lacked a licence, they had to attest that all they did was act as a platform for lenders who did have licences to issue loans. Additionally, the developers had to make sure that the name on their developer account corresponded to the declared registered business name.

Google increased the rules for app developers that provide personal loans to banks and non-banking financial institutions (NBFCs) in 2022. These developers were required to publish the names of their affiliated banks and NBFCs in the app's description and include a live link to the sites where they were registered as authorised representatives. The Personal Loan App Declaration included this.

Google has acted against the applications that claim to offer or enable personal loans by accessing user contacts or photographs not just in India but around the globe. As a result, the applications can no longer access private information like contacts and images.

To make sure that all apps in the Play Store adhere to its guidelines, Google often updates its policies and review procedures. Users will be safeguarded, and the company's customers' faith will be upheld.

Applications that advertise lending money might be risky if they are not reputable or if they use predatory lending techniques.It's crucial to do extensive research on the loan app before utilising it in order to prevent these risks. Before committing to anything, look for user reviews, confirm that the app is registered with the necessary regulatory organisations, and carefully read the terms and conditions. Before obtaining a loan through an app, it may be a good idea to speak with a financial counsellor or other dependable expert.