Securities and Exchange Commission proposes hike in loan limits
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has proposed raising the maximum loan limit for microenterprise and housing finance from non-banking microfinance companies to Rs5 million and increasing the income threshold for individual borrowers in the sector from Rs1.2m to Rs1.5m. The proposals are part of draft amendments to the Non-Banking Finance Companies and Notified…
Islamabad: The Securities and Exchange Commission of Pakistan (SECP) is proposing to increase the maximum loan limit for microenterprise and housing finance for non-banking microfinance companies to Rs5 million, with the income threshold for individual borrowers in the sector raised from Rs1.2m to Rs1.5m. These amendments are part of draft changes to the Non-Banking Finance Companies and Notified Entities Regulations 2008, which are currently open for public consultation.
The SECP aims to enhance non-banking finance companies' ability to meet the growing financing demands of small and medium enterprises (SMEs) by revising the annual turnover ranges for SME classification. Currently, small enterprises must have annual turnovers up to Rs150m, while medium enterprises fall within the Rs150m to Rs800m range.
The proposed changes would expand this to small enterprises with turnovers between Rs30m and Rs400m and medium enterprises with turnovers between Rs400m and Rs2bn. SECP believes these adjustments will enable non-banking finance companies to serve more borrowers and effectively address the financing requirements of businesses, households, and individuals.
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