Google updates play store policies for personal loan apps
Google has updated its policies for personal loan apps. The updates are aimed at preventing predatory developers from manipulating users into taking loans at exorbitant interest rates. Google defines personal loans “lending money from one individual, organization, or entity to an individual consumer on a nonrecurring basis, not for the purpose of financing purchase of a fixed asset or education”
Examples of these include payday loans, peer-to-peer loans, title loans and personal loans. In the update, Google requires apps to give consumers information to help them make informed decisions about the loan. This includes information on the quality, features, fees, risks, and benefits of the loan product.
Short term personal loans which require repayment in full in 60 days or less from the date the loan is issued are banned. In the United States, apps for personal loans where the annual percentage rate (APR) is 36% or higher are also banned.
To enforce this policy, Google will require developers to incorporate data about the loan product in the app metadata. This will enable Google to check whether the app complies with its policies.