SECP Proposes Rs5 Million Ceiling for Microfinance Loans
SECP Proposes Raising Microfinance and Housing Loan Limits to Rs5 Million
ISLAMABAD: (News Desk) – The Securities and Exchange Commission of Pakistan (SECP) has proposed raising the maximum limit for microfinance and housing loans to Rs5 million as part of a wider review of lending thresholds and business classifications.
The proposed amendments have been issued for consultation with relevant stakeholders, with the regulator seeking feedback before finalising the changes.
Under the proposal, the annual income threshold for borrowers eligible for microfinance lending would increase from Rs1.2 million to Rs1.5 million.
The SECP has also proposed raising the annual turnover limit for small businesses from Rs150 million to Rs400 million. For medium-sized businesses, the proposed ceiling would rise from Rs800 million to Rs2 billion.
According to the regulator, the revised thresholds for small and medium-sized enterprises are intended to bring the framework in line with recent changes introduced by the State Bank of Pakistan (SBP).
The SECP said the proposed amendments will be reviewed after stakeholder feedback, following which the final limits will be notified.
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