CCP warns of risks of using micro: credit, nano: loan facilities.

ISLAMABAD -- The Competition Commission of Pakistan (CCP) has warned and cautioned the general public about the rising trend of mobile app: based micro: credit and nano: loan facilities.

These applications, available on Google PlayStore and AppStore, offer short: term financing to borrowers but are currently facing numerous complaints and challenges in their track: and: trace process. As a result, the CCP has initiated an enquiry against these applications, which are observed to constantly change their premises and/or companies/undertakings behind such applications. Until the conclusion of the enquiry, the CCP deems it necessary to alert the general public about the many issues observed and how to avoid these issues. CCP has also intimated to SECP, FIA, and PTA in this regard.

Most of these applications operate without complying with Pakistan's regulatory framework. Therefore, it is important to ensure that the applications from which consumers are borrowing are duly registered and are operating under a regulatory regime. Moreover, these applications may tend to take complete control of the user's device by requiring the user to agree to standard access permissions for the app. This may affect the privacy of the user as well as make the user vulnerable to the operator of such applications. Therefore, users are cautioned to carefully read the terms and conditions displayed so that they can make an informed decision.

When applying for a loan through these mobile app: based micro: credit and nano: loan facilities, users are presented with various terms and conditions that outline the time period for which the loan is extended, the exact amount of loan disbursed, deductions made...