According to the SECP, ‘Asaan Qarza’ is among the 74 fake loan apps on the Google Play Store

The Security and Exchange Commission of Pakistan (SECP) on Saturday advised the public not to bother with fake loan apps downloaded from the Google Play Store.

Asaan Qarza, which has been downloaded over a million times from Google alone, is one of 74 fake loan apps that claim to be a “professional 100% online loan application” that provides cash.

These apps claim to offer easy loans to people at low interest rates. People who download these apps are given access to their phone’s data, including their photo gallery and contacts.

Once the applications are downloaded, they have access to the user’s personal data.

The financial regulatory authority announced Geo Fact Check that only 10 microloan apps are legal including Finja, Muawin, Credit Per, Easy PK Loan, Zoodpay & ZoodMall, Qisstpay CreditCat RazCash, Abhi, Barwaqt, Udhar-Paisa and Zaroorat Cash.

These applications are registered as non-banking financial companies by the SECP under the Companies Act, 1956.

“Apps are not included in the [above] lists are illegal,” said SECP Chief Spokesperson Musarat Jabeen Geo Fact Check via email: “The public is advised not to engage with illegal applications.”

The commission has identified 75 online apps that are considered to be scams, including Asaan Qarza, which the SECP wants to crack down on.

“To check the menace of illegal rental apps, the SECP has tied up with local regulatory authorities like PTA, FIA and SBP besides Google and Apple,” Jabeen added.

“In January and February, 75 unauthorized apps were reported to Google and Apple and removed from their app stores. Google has agreed to initiate a policy review to limit its platforms to licensed entities.

The spokesperson explained that these illegal apps engage in “predatory lending” behavior where they blackmail and harass borrowers, as well as data breaches that are subject to prosecution under the Electronic Crime Prevention Act 2016 and the Anti-Money Laundering Act 2010.

According to the rules, a digital lender is eligible to operate in the country if it has obtained the license and approval of the SECP and a certificate from the Pakistan Telecommunication Authority (PTA).

Furthermore, the applications cannot access the borrower’s phone book, contact list or photo gallery, even if the borrower has consented to this.

The list of illegal and disallowed apps is below: