SECP proposes raising microfinance, housing loan limits to Rs5mn
- Amendments issued for consultation with stakeholders, says regulator
The SECP proposes increasing microfinance, housing loan, and business turnover limits to Rs5 million, Rs1.5 million, and up to Rs2 billion respectively, aiming to expand access to finance.
- Increased microfinance and housing loan limits
- Higher income threshold for microfinance borrowers
- Revised turnover limits for small and medium businesses
The Securities and Exchange Commission of Pakistan (SECP) proposed on Tuesday raising the maximum limit for microfinance and housing loans to Rs5 million as part of amendments aimed at expanding access to finance.
The proposed amendments had been issued for consultation with stakeholders, the SECP said on Tuesday.
The regulator also proposed increasing the annual income threshold for borrowers eligible for microfinance loans to Rs1.5 million from Rs1.2 million.
For small businesses, the SECP proposed raising the maximum annual turnover threshold to Rs400 million from Rs150 million, while the limit for medium-sized businesses was proposed at Rs2 billion, up from Rs800 million.
The SECP said the proposed SME thresholds were aligned with recent changes introduced by the State Bank of Pakistan (SBP).