Small traders can access up to Rs3 million through SECP’s digital financing
New financing facility for small traders
The Securities and Exchange Commission of Pakistan (SECP) has approved Shariah-compliant digital financing to support small businesses and provide easier access to funds. Under the new facility, business owners will be able to obtain financing of up to Rs3 million through a digital application.
According to the SECP, the facility has been introduced under the name ‘Shamil Kar Tajir’. Small traders will be able to use the digital app to obtain financing for purchasing business goods from approved suppliers.
Focus on easier access to credit
The main purpose of the initiative is to give small businesses easier access to a formal and legal credit system. The facility is also aimed at helping traders meet their financial needs and continue their business activities.
SECP Chairman Dr Kabir Ahmed Sidhu said digital distribution would help take financing facilities to small businesses that have remained unable to access loans through the traditional financial system. He said the move could help bring more small businesses into the formal financial system.
Consumer protection remains a focus
Dr Sidhu also said efforts were being made to expand the reach of digital financing while ensuring consumer rights and protection. This means the expansion of digital financial services will also focus on safeguards for users.
The SECP has been working to increase access to financial services through digital channels. The latest initiative is aimed specifically at helping small traders obtain financing in a simpler way.
Small business financing reaches millions
According to SECP data, non-banking companies provided a total of Rs253 billion in loans to small businesses across Pakistan during the last year. During the same period, around 2.5 million people received financing facilities for small businesses.
The new facility is being viewed as another step toward increasing access to digital financial services for small businesses. It could also help traders purchase business supplies and support wider commercial activity.
The new system could make business financing easier for small traders who struggle to access traditional loans. Digital applications may also reduce some of the difficulties involved in applying for financing.
The key issue will be how easily traders can use the facility and how effectively their rights are protected. Wider access to formal financing could support small businesses and encourage more organised business activity.
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