SECP blocks 120 Online Loan Apps in Pakistan 

ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has blocked 120 online loan applications in Pakistan, ARY News reported.

As per details, the new updated list of online loan apps has been published on the SECP website.

According to the official statement of SECP, the Apps operators have made different channels in replacement of Google and apple play store.

The SECP urged users to download apps only from the verified play stores as the illegal apps on other channels is threat to the users.

Earlier, the Securities and Exchange Commission of Pakistan (SECP) imposed pricing caps on online apps and digital platforms offering personal loans.

In a significant move towards promoting responsible lending and consumer safety, the Securities and Exchange Commission of Pakistan (SECP) issued an all-encompassing set of requirements for Non-Banking Financial Companies (NBFCs) offering digital personal loans via mobile applications, a press release said.

In August, the Securities Exchange Commission of Pakistan (SECP) has introduced a new set of rules for online loan apps to curb predatory practices and ensure the financial sustainability of the borrowers.

The Securities Exchange Commission of Pakistan (SECP) imposed stricter rules for online loan apps by setting maximum limit of loans, loan period, restriction on use of the debtors’ personal data and others.

In order to curb predatory practices and ensure financial sustainability of the borrowers in the digital nano-lending sector, the SECP has imposed exposure limits on digital lenders and borrowers, a press release read.

A maximum limit of Rs25000 has been imposed for individual borrowers from a single loan app, and the aggregate amount of loans from multiple Apps has been restricted to not exceed Rs75,000.

Moreover, the loan period for a nano-loan through personal loan apps has been restricted to not more than 90 days.