SECP proposes higher borrowing limits for microenterprises & housing loans

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has proposed raising the maximum loan limit for microenterprise and housing finance loans from non-banking microfinance companies to PKR 5 million and increasing the income threshold for individual borrowers in the non-banking microfinance sector from PKR 1.2 million to PKR 1.5 million. The proposals are part of draft amendments to the Non-Banking Finance Companies and Notified Entities Regulations, 2008, issued for public consultation. In order to enable non-banking finance companies to better respond to the growing financing needs of small and medium enterprises (SMEs), SECP is also proposing revising the annual turnover ranges used to classify SMEs. The proposed range for small enterprises is Rs30 million to Rs400 million, compared with the current limit of up to Rs150 million. For medium enterprises, the proposed range is Rs400 million to Rs2 billion, compared with the current range of Rs150 million to Rs800 million. SECP said the changes would help non-banking finance companies serve more borrowers and respond to financing needs of businesses, households and individuals. The draft amendments are available on SECP's website. Stakeholders may send comments within 14 days to [email protected].