SECP proposes raising microfinance, housing loan limits to Rs5mn

Pakistan's securities regulator has proposed amendments that would lift the ceiling on microfinance and housing credit to Rs5 million, with the stated aim of widening access to finance. On Tuesday the SECP announced that the draft is open to input from stakeholders before any change is finalised. Business Recorder reported the proposal, which is still at the consultation stage.

The package also raises the income bar for microfinance borrowers to Rs1.5 million a year, up from Rs1.2 million. Small businesses would see their annual turnover ceiling move from Rs150 million to Rs400 million, and medium-sized firms would have a cap of Rs2 billion instead of Rs800 million.

The regulator tied its SME figures to recent changes made by the State Bank of Pakistan, so the two sets of thresholds are now aligned. The changes remain proposals until the consultation process is complete.