Get loans up to Rs5 million now under new SECP proposal

SECP proposes higher loan limits

The Securities and Exchange Commission of Pakistan (SECP) has proposed increasing the maximum financing limit for microfinance and housing loans to Rs5 million. The proposal is part of wider regulatory changes aimed at improving access to financial services.

The SECP has issued the proposed amendments for consultation with relevant stakeholders. The final rules will be decided after feedback from the concerned parties.

Higher income limit for borrowers

The proposal also includes a change in the annual income limit for people applying for microfinance loans. The limit could rise from Rs1.2 million to Rs1.5 million.

The proposed increase would allow more people to qualify for microfinance financing. It is also aimed at improving access to formal financial services for low-income individuals.

SME financing limits may expand

The SECP has proposed major changes for small and medium-sized enterprises (SMEs) as well. The annual turnover limit for small enterprises could rise from Rs150 million to Rs400 million.

For medium-sized enterprises, the proposed annual turnover limit would increase from Rs800 million to Rs2 billion. These changes could allow more businesses to fall within the financing framework for SMEs.

Changes linked to State Bank policy

According to the SECP spokesperson, the proposed SME limits have been aligned with recent policy changes by the State Bank of Pakistan. The changes are expected to provide greater financial flexibility to businesses and support economic activity.

The proposals are not final at this stage and will go through consultation with relevant stakeholders. The SECP will finalise the amendments after reviewing the feedback received during the process.

The proposed changes could increase the amount of financing available to individuals and smaller businesses. However, the Rs5 million limit is still a proposal and has not yet become a final lending rule.

The wider SME limits could also bring more businesses into the formal financing system. The final impact will depend on the rules approved after the consultation process.

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