India’s Ministry of Home Affairs has ordered Google to remove six suspected predatory loan apps from the Play Store, amid mounting concerns over data misuse and aggressive recovery tactics in a broader regulatory crackdown.
India’s Ministry of Home Affairs has stepped up its crackdown on alleged predatory digital lenders, ordering Google to remove six loan apps from the Play Store after investigators said they targeted borrowers looking for quick cash and may have misused personal data.
According to the Indian Cybercrime Coordination Centre, or I4C, the notice was sent to Google on August 7 and demanded that the apps be taken down or blocked within three hours. The applications named were LoanOrbit, Hisab, Nexus Loan, One Fund, Credit Factor and Mobile Credit Prairie. Google has since removed them, according to reports.
Authorities said the apps presented themselves as fast and convenient lenders but later pushed borrowers into steep repayment demands and aggressive recovery tactics. They also alleged that the apps collected sensitive information after installation, including Aadhaar details, financial records, contact lists, photo galleries and camera access, raising concerns that the data could be passed on to transnational cybercrime networks.
The move fits into a broader regulatory push in India against dubious lending platforms. A parliamentary finance committee has said more than 2,200 digital lending apps were removed from the Play Store between September 2022 and August 2023, while the Reserve Bank of India has been preparing a public repository to help users check whether an app is linked to a bank or non-banking financial company. Google has also worked with the Fintech Association for Consumer Empowerment, or FACE, which has been flagged as a priority partner to help identify non-compliant loan apps and reported hundreds of suspect listings in recent years. Indian officials have already told app stores to host only loan apps recognised by the RBI, while the central bank has warned the public about unauthorised digital lenders and the risk of cyber fraud.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
