More than 3,500 loan apps were penalised by Google in India in 2022 for violating the Play Store’s terms of service, according to the Play Protect report.
There are too many apps on Google Play Store that promise to lend loans but not all of them are legitimate. And sometimes, using these apps without proper knowledge and verification can land users in trouble. In order to safeguard users from falling for such apps, Google has taken action against more than 3,500 loan apps in India during 2022 for breaking the rules of the Play Store, as per Play protect report.This means that Google has removed these apps from its app store.
Google revised its guidelines in 2021 for applications in India that provide financial services, including those that provide personal loans. In September 2021, this regulation went into effect. The Reserve Bank of India required app developers to certify that they have a licence allowing them to offer personal loans and to produce a copy of the licence. If they lacked a licence, they had to certify that they merely offered a platform for loan offerings from licenced lenders. Additionally, the developers had to make sure that the developer account name they used corresponded to the registered business name they listed in their declaration.
Google increased the rules for app developers who 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.
To make sure that all apps in the Play Store adhere to its guidelines, Google frequently updates its policies and review procedures. Applications that advertise lending money can be risky if they are not reputable or if they use predatory lending techniques.It’s crucial to do extensive research on the lending app before utilising it in order to prevent these risks. Before agreeing 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 professional.
