SECP proposes higher loan limits for microfinance, SME classifications

The Securities and Exchange Commission of Pakistan has proposed increasing the maximum loan limit from non-banking microfinance companies to Rs5 million for microenterprise and housing finance, according to Dawn. The income threshold for individual borrowers in this sector would also rise from Rs1.2 million to Rs1.5 million.

The proposals are part of draft amendments to the Non-Banking Finance Companies regulations issued for public consultation. The SECP is also proposing to revise the annual turnover ranges used to classify small and medium enterprises.

Under the draft, the proposed range for small enterprises is Rs30 million to Rs400 million, up from the current limit of up to Rs150 million. For medium enterprises, the proposed range is Rs400 million to Rs2 billion, compared to the current Rs150 million to Rs800 million.

The SECP said the changes aim to help non-banking finance companies serve more borrowers and respond to the financing needs of businesses, households and individuals.