Personal loan apps taken down from PlayStore
2021-01-14Google Play Store took down four personal loan apps- 10MinuteLoan, Ex-Money and Extra Mudra and StuCred after a news portal flagged to Google that they were violating its ban on offering personal loans requiring full repayment in 60 days or less. StuCred was allowed back on Google Play store on January 7 after it removed the offer of a 30-day loan, a news portal reported.
According to borrowers quoted by a news agency, at least six other apps remain available on PlayStore that offer loan repayment lengths, or tenures with some tenures as low as seven days. Some even charge a processing fee of as high as Rs 2000 on loans of less than Rs 10,000 with tenures of 30 days or undertaking the interest rates to 60 per cent. The Indian banks in comparison charge annual interest rates of 10-20 per cent for loans that do not have to be paid back in full for at least a year.
"The Google Play Developer Policy requires financial services apps that offer personal loans to disclose key information such as the minimum and maximum periods of repayment, the maximum Annual Percentage Rate, and a representative example of the total loan cost," Frey noted adding that Google India allows personal loan apps with full repayment required in greater than or equal to 60 days from the date the loan is issued.
"We believe transparency of information around the features, fees, risks, and benefits of personal loans will help people make informed decisions about their financial needs, thereby reducing the risk of being exposed to deceptive financial products and services," she wrote. Google India has directed developers to only request permissions that are necessary to implement current features or services to protect user privacy.
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