Beware of fake loan apps available in the Google Play Store

Several phone apps claim to offer low-interest easy loans to people in Pakistan in exchange for access to a person’s phone data, including their photo gallery and contacts.

Many of these apps are scams.

Claim

Several quick loan apps available for download from the Google Play Store claim to provide easy access to credit for those in urgent need of cash.

One such app, Asaan Qarza, claims to be a “professional 100% online loan application” that provides cash in seconds.

Asaan Qarza has been downloaded over a million times from Google alone.

One Twitter account recently wrote that these rental apps have access to a person’s personal photos, videos, and call data once downloaded.

“People should be careful with online loan providers,” the account wrote.

Fact

The Securities and Exchange Commission of Pakistan (SECP), the financial regulator, said Geo Fact Check that there are only ten legal microcredit applications and therefore the Commission has registered as a non-banking finance company under the Companies Act 1956.

The ten apps are: Finja, Muawin, Credit Per, Easy PK Loan, Zoodpay & ZoodMall, Qisstpay CreditCat RazCash, Abhi, Barwaqt, Udhar-Paisa and Zaroorat Cash.

“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 Security and Exchange Commission of Pakistan (SECP) has so far identified 75 online loan applications that are fraudulent.

Asaan Qarza is on the list of loan applications that the SECP hopes to crack down on.

“To check the menace of illegal rental apps, the SECP has also tied up with local regulators like PTA, FIA and SBP in addition to Google and Apple,” Jabeen added. “In January and February, 75 unauthorized apps were reported to Google and Apple. to remove it from their app store. 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 and breach data protection, which should be prosecuted under the Prevention of Electronic Crime Act 2016 and the Anti-Money Laundering Act 2010.

According to the SECP 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: