Google will implement strict guidelines for personal loan applications that subject customers to dubious or risky financial products or services. The imposition of guidelines will be implemented from May 31.  The tech behemoth is updating its “Personal Loans policy” to prevent access to user-confidential data.

The tech giant had stated that apps that offer personal loans or are primarily used to facilitate access to personal loans (i.e., lead generators or facilitators) are not permitted to read or access sensitive data, including contacts and photos. Other permissions that are restricted include access to media_videos, fine_location, contacts, and media_images.

According to Google, “This policy applies to apps that offer loans directly, lead generators, and those who connect consumers with third-party lenders.” For India, it had advised personal loan apps to fill out the Personal Loan App Declaration for India and provide the necessary supporting documentation. For instance, if the business has a licence from the Reserve Bank of India (RBI) to offer personal loans, it must submit a copy of the licence for review.

According to Google, you will need to accurately reflect this in the declaration if you are not directly engaged in money lending activities and are only providing a platform to facilitate money lending by registered Non-Banking Financial Companies (NBFCs) or banks to users. Additionally, the description of your app must prominently display the names of all registered NBFCs and banks.

Google further stated that if your app consists of financial products and services, you must comply with state and local regulations. This includes specific disclosures required by local law of any region or country that your app targets.

Reportedly, this action was taken after the tech giant was requested by the Indian government and central bank to implement stricter controls to help reduce the use of illegal digital lending applications in India last year in 2022.