Personal loan applications have conquered the market in recent years. Ease of use and ease of approval process made them popular, but now concerns are being raised about such simplicity in a complex matter like loan application.
Google had taken note of these issues and wanted personal loan apps in India to submit additional proof of eligibility requirements and set a deadline for these apps to comply with the new rules. “If you are licensed by the RBI to provide personal loans, you must submit a copy of your license for our review,” Google pointed out via a blog post.
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This eligibility is determined when the company provides a copy of its license by the Reserve Bank of India (RBI). The second and most important criterion is a statement that the app is not directly engaged in money lending activities and merely provides a platform to facilitate money lending to consumers.
“If you are not directly engaged in money lending business and only provide a platform to facilitate the lending of money by registered Non-Bank Financial Companies (NBFCs) or banks to users, you will need to accurately reflect this in the statement,” he added.
Google also wants better transparency from entities, including mentioning the names of all registered NBFCs and banks. He also wants greater clarity on the creator/owner of the lending applications, so that it matches the name of the associated registered business name provided in the statement provided by the business.
Along with India, Google also wants to impose these rules in countries like Indonesia and the Philippines.
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Several reports have spoken of the discomfort caused by the proliferation of small personal apps in the country over the past year. People sign up for convenience, but any non-payment is treated with disdain, which would have put many people on the verge of ending their lives.
These changes from Google could hold businesses more accountable and also keep them safe from any bad practice.
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