ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has proposed increasing the maximum loan limit for microenterprise and housing finance offered by non-banking microfinance companies to Rs. 5 million.
The proposed amendments would also raise the income threshold for individual borrowers from Rs. 1.2 million to Rs. 1.5 million.
The proposals are part of draft amendments to the Non-Banking Finance Companies and Notified Entities Regulations, 2008, which have been issued for public consultation.
The SECP is also proposing changes to the annual turnover limits used to classify small and medium enterprises (SMEs). Under the proposed framework, small enterprises would have an annual turnover ranging from Rs. 30 million to Rs. 400 million, compared with the current upper limit of Rs. 150 million.
For medium enterprises, the proposed turnover range would increase to Rs. 400 million to Rs. 2 billion, compared with the existing range of Rs. 150 million to Rs. 800 million.
According to the SECP, the proposed changes are intended to enable non-banking finance companies to serve a broader range of borrowers and better respond to the financing needs of SMEs, households, and individuals.
The proposed increase in loan limits could also expand access to financing for eligible borrowers seeking funds for housing and small business activities, subject to the final regulatory framework and lending requirements.
