Why has Google banned personal loan apps on Android?
Delhi : Google plans to restrict access to private user data including contacts, images, and more by applications that make loans to people in order to combat predatory lending practices from lenders that harass borrowers. This action is a component of Google's stepped-up efforts to address the problem.
A new set of restrictions has been added to Google's Personal Loans policy for Play Store apps, prohibiting them from accessing external storage, contacts, photographs, videos, or call records. From May 31, these modifications to Google's Financial Services policies will be in effect.
According to the company's update, "Apps that provide personal loans or have the primary goal of facilitating access to personal loans (i.e., lead generators or facilitators) are forbidden from accessing sensitive data, such as images and contacts.
Debt collectors annoy some borrowers who obtain credit through mobile apps. According to reports, these agents utilised modified photographs to frighten borrowers by accessing their images and contacts. In severe situations, this has resulted in the suicide of those who were being targeted. The safety of borrowers has come under scrutiny because to this tendency.
Such harassing incidents have been regularly documented in Kenya and India. Google removed thousands of personal loan apps from the Play Store in response to warnings from law authorities and central banks. The business also put regulations in place to prevent unauthorized loan apps from being downloaded from the Play Store.
In order to guarantee that personal loan apps on the Pakistani Play Store are capable of offering loans, Google has enforced specific licensing papers. Additionally, the corporation has mandated that there can only be one digital lending app available on the Play Store for non-banking financial institutions in the nation.
In addition to India, Kenya, Nigeria, the Philippines, and Indonesia, the new policy is also being implemented in these markets.
