Loan apps in Pakistan are gaining fame nationwide but unfortunately for all the wrong reason. With inflation increasing day by day, the nation is frustrated with its limited incomes and heavy fiscal burdens. Needless to say, people are looking at options to make money that are unethical and forbidden by Islam. Scams by loans app are such action, that has ripped many innocent people, of their hard-earned money. With the recent reveal of a fake app loan list in Pakistan, Google announced a new policy to save people from getting scammed by digital criminals. To learn what the policy is about and how it will make digital platforms a safe place, read the blog till the end.
Google Takes Action Against Loan Apps in Pakistan
Google has come up with a new policy, in order to discourage loan scams in Pakistan. Google’s new policy permits Non-Banking-Finance Companies (NBFC) to own one Digital Lending app ( DLA). Furthermore, the policy instructs, that if any NBFC owns more than one DLA, will result in getting their developer account terminated. According to Google, easy loan apps in Pakistan will require you to fill out a Personal Loan App Declaration form, and submit essential documents. The lending application providers should also receive approval from the Securities and Exchange Commission of Pakistan ( SECP). Lastly, Google has the authority to request further documents and verify them with relevant authorities before it is made available on Google Playstore. To make the digital world, a secure place, DLA’s active in Pakistan will not have access to personal data, including media images, contacts, and location, which has proved to be a prominent tool for loan blackmail. Applications, that are offering short period loans and have 60 days’ pay-back plans are no longer allowed on Play Store. After the latest tech news was released, Google’s Director for Pakistan, Farhan S. Qureshi, made the following statement:
“Google is taking preventative measures by setting stringent requirements for Digital Lending Apps in order to reduce financial risk and ensure data privacy. We strongly believe that the new requirements imposed on developers of personal loan apps will provide an extra layer of protection for the users,
It goes without saying, that such a step from Google is appreciated, as the tech company sets the highest standards of privacy and security for its consumers.
Did Google Remove Barwaqt from PlayStore?
For those who don’t know, Barwaqt is one of the most popular loan apps in Pakistan. Numerous times, you must have spotted its ads on social media, such as Tiktok and Facebook. With fraudulent loan apps getting noticed, Google decided to clean its Playstore with apps that are actively involved in scamming people. Unfortunately, Barwaqt is suspected to be one of them too. When you search the app on the Play Store, it shows that the link has been eradicated. However, Barwaqt denied the news and informed us that due to technical reasons, the app was taken off by their team and is back again on the platform. Amid, many frauds coming up, it is hard to say if the app is safe to use, however, it is advisable to not rely on loan apps and rather go through the process, via your bank.
More Than 40 Loans Apps in Pakistan Are Blocked
After receiving a lot of complaints, higher authorities have started crackdowns on fraudulent loan apps in the country. Federal Minister for Information and Technology (IT) and Telecommunication Amin-ul –Haque stated that Chairman Pakistan Telecommunication Authority (PTA) Major General Hafeezur Rehman has given orders to take rapid action on the illegal loan cases, Under the orders from the superiors, 43 loans applications have been obstructed. Many cases surfaced on social media such as Facebook, where malicious scammers, threatened and blackmailed naïve citizens, abusing their financial weaknesses. Apart from blocking the blacklisted apps for urgent cash loans in Pakistan, a public campaign has been made active. Furthermore, the authorities requested citizens to report any suspicious loan mishap to the PTA, the Federal Investigation Agency’s ( FIA) Cybercrime Wing, or their nearest police station. Here are some of the loan apps that are banned in Pakistan:
· Superb Loans
· Fair Loans
· Qarza Pocket – Personal Funds
· Asan Qarza – Credit Loans
· Swift Loans
· Apple Qist Qaraz
How to Choose Reliable Loan Apps in Pakistan?
In recent years, loan apps have grown in popularity in Pakistan. In times of financial necessity, these applications can be a lifeline as they provide a handy and rapid option to borrow money. However, it's crucial to conduct a study before selecting a loan application. Not every app is made equal, and some can have exorbitant interest rates or hidden costs. Here are some recommendations for Pakistani loan applications.
· Examine the fees and interest charged by various apps.
· Before applying for a loan, carefully read the terms and conditions.
· Make sure you comprehend the terms of repayment.
· Just ask for what you really need.
If you're thinking about utilizing a loan app, make sure to do your research and pick the best one for you. You may use a loan app to receive the money you require without falling into financial difficulty with a little advance forethought. Here are some additional considerations to make while utilizing a loan app in Pakistan in addition to the advice provided above.
· Verify if the Securities and Exchange Commission of Pakistan (SECP) has granted the app a license.
· Use only apps with a solid reputation.
· Apps with too-good-to-be-true discounts should be avoided.
You can get in touch with the SECP or the Financial Institutions Ombudsman (FIO) if you have any issues with loan applications. You can reach the SECP at +92-21-99201000 and the FIO at +92-21-99201111. We hope today’s blog has been helpful for you and saved you from such digital scams. Are you thinking to run your online business on a trusted platform, We have the perfect solution for you.