Fact-check: Beware of fake loan-app available on Google Play Store

Several phone apps claim to offer people in Pakistan easy loans at low-interest rates, in exchange for access to a person’s phone data, including his/her photo gallery and contact list.

Many of these apps are scams.

Claim

Multiple quick-loan apps, available for download on Google Play Store, allege they provide easy credit access to those in urgent need of money.

One such app, named Asaan Qarza, claims that it is a “professional 100% online loan application” which will provide cash in no time.

Asaan Qarza has been download over one million times from Google alone.

One Twitter account wrote recently that these lending applications, once download, get access to a person’s personal photos, videos, call data.

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

Fact

The Security and Exchange Commission of Pakistan (SECP), the financial regulatory authority, has told Geo Fact Check that there are only ten micro-credit apps which are legit, therefore registered with the Commission as non-banking financial companies, under the Companies Act, 1956.

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

“Apps not included in the [above] list are illegal,” Musarat Jabeen, the chief spokesperson of the SECP, told Geo Fact Check via email, “Public is advised not to deal with illegal apps.”

The Security and Exchange Commission of Pakistan (SECP) has identified 75 online lending applications which are scams, till now.

Asaan Qarza is among the list of the credit apps that SECP is hoping to crack down on.

“In order to control the menace of illegal lending apps, SECP has liaised with local regulators such as PTA, FIA, and SBP besides Google and Apple,” Jabeen added, “In January and February, 75 unauthorised apps were reported to Google and Apple for removal from their app stores. Google has agreed to initiate a review of its policies to limit its platforms to licensed entities.”

The spokesperson explained that these illegal apps have a “predatory lending” behaviour, where they blackmail and harass borrowers and breach their data privacy, which are liable for action under Prevention of Electronic Crime Act, 2016 and Anti Money Laundering Act, 2010.

As per SECP rules, a digital lender will be authorised to operate in the country if it has obtained a license and approval from SECP and certification from the Pakistan Telecommunication Authority (PTA).

Furthermore, the apps are not allowed to access a borrower’s phone book, contact list or photo gallery, even if the borrower has given consent.

The list of illegal and unauthorised apps is listed below: