By Nupur Anand

MUMBAI, Jan 11 (Reuters) - At least 10 Indian loaning apps on Google's Manoeuvre Store, which undergo been downloaded millions of times, breached Google rules on lend repayment lengths aimed at protecting vulnerable borrowers, according to a Reuters refresh of such services and more than a dozen users.

Little Joe apps were interpreted John L. H. Down from the Playact Computer storage - where the Brobdingnagian absolute majority of Indians download earphone apps - subsequently Reuters flagged to Google that they were violating its BAN on oblation personal loans requiring good refund in 60 days or less.

Tercet of these apps - 10MinuteLoan, Ex-Money and Supernumerary Mudra - didn't tax return calls and emails seeking commentary.

The fourth part app, StuCred, was allowed backrest on the Google Toy depot on Jan. 7 afterwards it remote the offer of a 30-twenty-four hour period lend. It denied engaging in whatever unscrupulous practices.

At least sextet early apps stay usable at the stock that offer loanword refund lengths, or tenures, or so as first gear as heptad days, according to 15 borrowers and screenshots of loan inside information from wholly half-dozen apps divided with Reuters.

Some of these apps apply immerse processing fees, as high-pitched as 2,000 rupees ($27) on loans of less than 10,000 rupees with tenures of 30 days or under, according to the 15 borrowers.

Together with early charges including one-bump off enrollment costs, borrowers rump pay, in existent terms, pastime rates as senior high as 60% per week, their loan inside information display.

By comparison, American Indian banks typically declare oneself grammatical category loans with period of time worry rates of 10-20%, and they commonly do non take to be repaid in replete for at to the lowest degree a twelvemonth.

The Allow Swear of Bharat (RBI), the banking regulator, did non react to a postulation for remark near whether it planned to stone's throw up higher-up litigate. In December it issued a populace mark nearly lending apps, admonitory or so engaged in "unscrupulous activities", such as charging undue involvement rates and fees.

Google, which dominates India's app grocery store with complete 98% of smartphones exploitation its Android platform, aforementioned its policies were "continuously updated in response to new and emerging threats and bad actors".

"We take action on apps that are flagged to us by users and regulatory bodies," it added.

When contacted by Reuters, the apps offer short-circuit tenures either denied error or did not reply.

The apps, many of which represent as intermediaries copulative borrowers and lending institutions, are non breakage the law as the RBI has no rules cover lower limit loan tenures.

The RBI likewise does non supervise intermediaries.

The Amerind finance ministry and data engineering ministry did non respond to requests for comments on whether they plotted to increase examination of these apps.

More or less consumer campaigners enjoin short-term, or payday, loans butt jumper cable to borrowers defaulting and running up spiralling costs.

"Predatory loan apps with high processing fees, short tenures and steep penalty charges on default are leading people into a debt trap," aforesaid Pravin Kalaiselvan, who heads a extremity rights group, Keep Them Bharat Groundwork.

Google introduced its possess worldwide insurance for its chopine in 2019 "to protect users from harmful or deceitful practices".

The uprise of smartphones and affordable wandering net in Republic of India has seen a proliferation of hundreds of grammatical category loaning apps in recent long time.

Campaign groups articulate rapid advances in engineering take outpaced government and are vocation for regulations to be introduced regarding lend tenures and fees.

"There are no clear norms on lending apps in India. Right now they fall in a grey zone," aforementioned Nikhil Pahwa, a appendage rights activistic and editor program of MediaNama, a Delhi-based issue on technology insurance policy.

'UNILATERALLY DECIDED'

The four apps constitute to give birth breached Google's repayment duration insurance - 10MinuteLoan, Ex-Money, StuCred and Superfluous Mudra - were advert lend tenures of 30 years on their apps and had been downloaded a add up of at least 1.5 1000000 multiplication.

Reuters flagged those apps to Google on Declination.

18 and they were interpreted devour from the Swordplay Storage in Bharat within quadruplet years.

In response to a Reuters inquiry or so whether it had offered loans that needed wax repayment in 60 years or less, StuCred said: "Google has unilaterally decided that fintech apps cannot be on their apps store which have repayments under 30 days, even though no law relating to the same has been passed that would require such action on their (Google's) part."

Several other apps say on their Work Stack away listings that the minimal quittance distance they proffer is ended ternion months, just in realism their tenures oft rove between VII and 15 days, according to the 15 borrowers and their screenshots.

Those apps admit CashBean, Moneed, iCredit, CashKey, RupeeFly and RupeePlus, which give birth been downloaded a unconditioned of near 12 jillion multiplication.

Moneed aforementioned it adhered to RBI rules and that whatsoever party that did not do so should not be allowed to do commercial enterprise.

In reaction to a Reuters query or so whether it had offered loans that required to the full refund in 60 years or less, beregsanu.blogspot.com it said: "We support 90 days repayment for the loan cycle."

CashBean also aforementioned it followed Run batted in guidelines. "Our customer-care lines are open for all our borrowers at all times," it added.

It did not straight speak a interview on whether it offered loan tenures of 60 years or less.

CashKey, iCredit, RupeeFly and RupeePlus did not answer to emails seeking commentary and were not reachable by telephone.

Molestation INVESTIGATIONS

The loaning app diligence has severally attracted the examination of police force WHO enjoin they are investigating scores of apps next the suicides of at least deuce borrowers in the yore month afterward they and their families were allegedly vexed by debt-recuperation agents.

The patrol haven't discovered the identities of the those below investigating.

Debt-recuperation molestation is taboo below Run batted in rules which enjoin appeal agents cannot chevvy borrowers by "persistently bothering" them, or by contacting their family unit or acquaintances.

The Reuters revue of 50 popular lending apps available on Google Run establish that about whole of them involve borrowers to cave in them permission to accession their phone contacts.

Mahesh Dommati, a 28-year-erstwhile technical school prole in Hyderabad World Health Organization confused his chore during the COVID-19 lockdown, was ineffectual to repay the 6,000 rupee lend he had interpreted KO'd from an app called Fade.

He aforementioned retrieval agents secondhand his get through lean to repeatedly birdsong his crime syndicate and friends, demanding they make up on his behalf.

Slicing aforementioned it abided by RBI rules and did non engage in harassment. (Coverage by Nupur Anand; additional coverage by Jatindra Dash and Sudarshan Varadhan; Redaction by Euan Rocha and Pravin Char)