Pakistan’s regulator proposes raising loan limits — Dawn

In Pakistan, the Securities and Exchange Commission of Pakistan (SECP) has proposed raising the maximum loan amount for microenterprises and housing finance provided by non-bank microfinance companies to 5 million Pakistani rupees. The regulator also proposes increasing the income threshold for individual borrowers in this sector from 1.2 million to 1.5 million rupees.

Draft amendments put up for discussion

The proposals are contained in draft amendments to the Non-Banking Finance Companies and Notified Entities Regulations, 2008. The document was published for public consultation, Dawn reports.

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New thresholds for small and medium-sized businesses

SECP also proposes revising the annual turnover ranges used to classify small and medium-sized enterprises. For small enterprises, the proposed range is from 30 million to 400 million rupees, while the current upper limit is 150 million rupees.

For medium-sized enterprises, the regulator proposes setting a range from 400 million to 2 billion rupees instead of the current range of 150 million to 800 million rupees. SECP said the changes should help non-bank financial companies reach more borrowers and better respond to the financing needs of businesses, households and individuals.