SECP proposes raising Microfinance, Housing Loan limits to Rs5m

According to Mettis Global, the Securities and Exchange Commission of Pakistan has put forward a draft set of amendments to the NBFC Regulations that would lift several loan caps, income ceilings and turnover limits. Under the proposal, housing and microenterprise loans could reach Rs5 million, while the general microfinance ceiling would rise to Rs500,000. The regulator says the changes are meant to widen access to finance and bring its definitions into line with recent State Bank of Pakistan adjustments.

The microfinance income cap for borrowers would go up from Rs1.2 million to Rs1.5 million a year, a change the SECP links to inflationary pressure. Turnover limits for small enterprises would rise from Rs150 million to Rs400 million, and for medium enterprises from Rs800 million to Rs2,000 million. Stakeholders have fourteen days from the publication of the draft on the regulator's website to submit comments before the rules are finalised.