Google removes Indian lending apps violating repayment rules

Google took down four of at least 10 Indian lending apps on Store that breached lending rules in imposing full repayment in 60 days or less.

The rules were aimed at protecting vulnerable borrowers.

The four apps were advertising loan tenures of as low 30 days on their apps and downloaded at least 1.5 million times.

Three of the four apps - 10MinuteLoan, Ex-Money, and Extra Mudra - have not been allowed back at the Play Store so far. A fourth app, StuCred, was allowed back on Jan. 7 after removing its 30-day offer.

At least six other Indian apps that violate loan repayment lengths, some for as low as seven days, remain available at the store, according to 15 borrowers.

Some of the apps collect processing fees as high as $27 on loans of less than $135, with tenures of 30 days or under.

Together with other charges, borrowers pay interest rates as high as 60 percent per week.

It is in the Play Store here the vast majority of Indians download phone apps. Over 98 percent of Indian smartphones use Google's Android platform.

By contrast, Indian banks offer personal loans with annual interest rates of 10-20 percent, which need not be repaid in full for at least a year.

The apps, many of which act as intermediaries of lending institutions, are not breaking the law as the Reserve Bank of India (RBI) has no rules covering minimum loan tenures. The RBI also does not oversee intermediaries.

Google introduced its global policy in 2019 to protect users from harmful or deceitful practices. It vowed to continuously update to deal with new and emerging threats and bad actors.