SECP proposes raising microfinance, housing loan limit to Rs5 million

According to Profit by Pakistan Today, the Securities and Exchange Commission of Pakistan (SECP) has floated a plan to raise the cap on microfinance and housing credit to Rs5 million. The move forms part of a wider rewrite of financing rules intended to make borrowing easier to obtain. The draft amendments have been published so that stakeholders can comment before anything is settled.

Eligibility for microfinance would be loosened, with the yearly income ceiling for applicants moving from Rs1.2 million to Rs1.5 million. On the enterprise side, the small business turnover threshold would climb from Rs30 million to Rs400 million, while the medium-sized ceiling would go from Rs800 million to Rs2 billion. The SECP says the SME figures are in line with the State Bank of Pakistan's latest revisions.

Taken together, the changes would widen the set of businesses and borrowers that fall within these bands. Stakeholders now have the opportunity to send their views, and the commission has opened that window for feedback.