SECP Approves Up to Rs. 3 Million Digital Loan Facility for Small Businesses

The Securities and Exchange Commission of Pakistan (SECP) has recently approved a Shariah compliant digital financing facility aimed at providing up to Rs. 3 million in loans to small businesses through a digital app. This new facility will enable small business owners to obtain financing for purchasing business goods from approved suppliers via the "Shamil Kar Tajir" app.

SECP Chairman Dr. Kabir Ahmed Sidhu highlighted that digital distribution channels would facilitate credit access for businesses with limited credit options. He also emphasized the regulator's commitment to consumer protection as digital financing expands. Over the past year, nonbanking companies provided Rs. 253 billion in financing to small businesses, and SECP data shows that 2.5 million people received financing for small businesses during the same period.