SECP directs NBFCs: No finance to borrower having unsettled default

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has directed the Non-Banking Finance Companies (NBFCs) not to provide finance to a borrower having unsettled default/write-off from any credit institution during the last three years.

According to the revised Non-Banking Finance Companies and Notified Entities Regulations, 2008, the SECP has specified that an NBFC shall not provide finance to a borrower whose Credit Information Bureau (CIB) report reflects any unsettled default or write-off from any credit institution during the last three years.

For the purpose of this regulation credit institutions means as defined in the Credit Bureaus Act, 2015, the SECP added.

An NBFC engaged in digital lending shall ensure that the information required in the basic fact sheet is provided by the Borrower digitally as given in Schedule, the SECP added.

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