Google clamps down on personal loan apps in its Indian app store amid concerns

Android maker Google said it has removed personal loan apps in its Google Play Store in India that violate its user safety policies after receiving reports from users and government agencies.

Photo credit: Dimarik16

The US tech titan also contacted the developers of other similar apps under review, ordering them to prove that they comply with applicable local laws and regulations. It will remove apps that fail to do so with no further notice.

According to an Economic Times report, over 30 apps were taken down as part of the crackdown.

“In addition, we will continue to assist the law enforcement agencies in their investigation of this issue,” the company wrote in a blog post on January 14.

According to Google, developers in its app marketplace agree to the terms of its Google Play Developer Distribution Agreement, which states that apps must adhere to applicable laws.

More specifically, its Google Play Developer Policy requires financial services apps that offer personal loans to disclose information such as the minimum and maximum periods of repayment, the maximum annual percentage rate, and a representative example of the total loan cost.

Currently, Google commands roughly 99% of India’s smartphone population through Android. This massive presence has alerted some of the country’s biggest tech tycoons such as Paytm co-founder and CEO Vijay Shekhar Sharma to address growing concerns about the internet giant’s “monopolistic” influences.

Late last year, Sharma reportedly had talks with executives from MakeMyTrip, PolicyBazaar, Sharechat, and several other tech firms, mulling over the idea of developing an app store alternative for the Indian market. A few days after, it launched its own Paytm Mini App Store.