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Consumer loan apps charging a staggering interest rate of 36 per cent or more per month have been barred on Google Play Store, according to a report by the Wall Street Journal (WSJ) on October 13. More commonly known as payday loans, consumers can borrow small amounts of INR 5,000 to INR 1 lakh for a short period of 30-60 days.
The annual interest rate on payday loans work out a mind-numbing 540% or more. In comparison, the steepest interest rate charge is on credit card loans, which comes to be around 40% per year.
This move is part of GoogleвЂ™s fight against high-interest loans вЂњto protect consumers from deceptive and exploitative personal loan termsвЂќ, as stated in the WSJ report. Google had earlier barred advertisements from payday loans from appearing in its search engine.