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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.