Google has updated its policy on financial services for developers to include clarifications related to personal loan applications, as well as new requirements for these applications in India and Indonesia.
âWe are updating the Financial Services Policy to clarify the definition of total loan cost and require all personal loan applications to be properly labeled under the Finance category. We are also adding new requirements for personal loan applications in India and Indonesia, âGoogle said on its support page.
The changes will be effective from September 15, 2021.
In accordance with the policy, “Apps that provide personal loans, including, but not limited to, apps that offer loans directly, lead generators, and those that connect consumers to third-party lenders, must have the application category set to “Finance” in the Play Console. . “
Applications will need to disclose a range of information in the application’s metadata, including the minimum and maximum repayment period, the maximum annual percentage rate (APR), which typically includes the interest rate plus fees and the like. costs for one year, or other similar rate consistent with local law.
âA representative example of the total cost of the loan, including principal and all applicable fees,â the policy explains.
Google publishes first transparency report in accordance with new IT rules
Google has also specified additional requirements for personal loan applications in India and Indonesia. Applications must meet additional proof of eligibility requirements in these countries.
In India, these applications will have to complete the personal loan application statement and provide documents to support their statement. For example, for platforms authorized by the Reserve Bank of India (RBI) to provide personal loans, they must submit a copy of their license for review.
RBI has received complaints against over 1,500 loan applications: Thakur
Platforms that are not directly engaged in lending money and that only facilitate lending by registered non-bank financial companies (NBFCs) or banks, will need to accurately reflect this in the statement.
They should also ensure that the developer account name reflects the associated registered business name name provided in their statement.
By January of this year, Google had reviewed hundreds of personal loan apps in India and removed those that violated its policies.
The tech giant’s crackdown comes a day after the RBI announced it had established a task force to study all aspects of digital lending activity by regulated and unregulated players, with the aim of bringing in place an appropriate regulatory approach.