Securities and Exchange Commission proposes hike in loan limits

According to Dawn, the Securities and Exchange Commission of Pakistan (SECP) has proposed lifting the ceiling on loans that non-banking microfinance companies can extend for microenterprise and housing finance to Rs5 million. The regulator also wants the income benchmark for individual borrowers in this segment raised from Rs1.2m to Rs1.5m.

The suggestions form part of a set of draft changes to the Non-Banking Finance Companies and Notified Entities Regulations 2008, put out so the public can comment. SECP is also seeking to redraw the annual turnover bands used to define SMEs, with small enterprises placed between Rs30m and Rs400m against a current upper limit of Rs150m. Medium enterprises would fall in a Rs400m to Rs2bn range, replacing the existing Rs150m to Rs800m bracket.

SECP said the revisions would let NBFCs reach more borrowers and respond to demand from a broader customer base. For PSX investors, the proposals show the regulator aiming to widen lending reach in the non-bank segment, though the report names no listed company.