Google Play Store To Shut Out Predatory Personal Loan Apps

Services providing personal loans always tend to carry cybersecurity risks and potential harm to the lives of users. Recognizing this, Google recently issued a ban on personal finance applications related to loans out of Play Store. The ban notifications have quietly appeared on the policy page as these apps are classified as "restricted content". Prohibited applications include high-interest lending services, such as payday loans, title loans, peer-to-peer loans, etc.

Currently, the portfolio of financial applications is categorized as bank apps and third-party apps. In which, the latter is more diversified with various financial needs, such as investments, budgeting, money management and so on. Regarding the needs of loans, a number of apps related to mortgages, student loans, car loans, and revolving credit are available on the Play Store.

However, after the mentioned adjustments, Google will not license loan applications that have an annual percentage rate (APR) for borrowing equaling or higher than 36 percent. In addition, stricter loan requirements will have to be made public, such as the APR, maximum and minimum loan tenors, and a statement of the total cost accrued for the loan (if any). 

Google’s ban will also not be limited to applications that offer short-term loans and ‘payday’ loans, in which the normal tenor is less than 60 days. Not only that, but any applications associated with third-party lenders will also be closely monitored by Google. For now, the list of the restricted content on Google has been expanded and is not limited to malicious loan applications. Those related to cryptocurrency mining and binary options trading, as well as gambling and illegal activities will also be excluded from the Store.

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