San Francisco: Google has ordered loan apps in Kenya to present proof of their licenses to operate in the country, or they risk being removed from the Google Play store.
According to TechCrunch, the move on Google’s part was necessary to protect borrowers from rogue loan apps, many of which charge borrowers outrageous interest rates as well as operate against legal provisions.
“Developers with personal loan apps targeting Kenyan users must complete [a] declaration form and submit the necessary documentation before publishing their personal loan app a Personal loan apps operating in Kenya without proper declaration and license attribution will be removed from the Play Store,” Google said in a policy update.
New and existing loan applications in Kenya are now expected to submit the required documents and information by the end of January next year, following similar actions in India, Indonesia, and the Philippines, the report said.
Back in May, Google announced that it would require personal loan apps in India to complete the additional proof of eligibility requirements.
The eligibility includes a copy of their license by the RBI, and a declaration that they are not directly engaged in money lending activities and are only providing a platform to facilitate money lending by registered Non-Banking Financial Companies or banks to users.
Meanwhile, in August, the tech giant purged more than 2,000 controversial personal loan apps from its Play Store in the January-June period after consulting with law enforcement agencies.