SECP proposes raising microfinance and housing loan limits to Rs5m

The Securities and Exchange Commission of Pakistan has proposed raising the maximum limit for microfinance and housing loans to Rs5 million, part of a set of amendments the regulator says are aimed at expanding access to finance. The proposals have been issued for consultation with stakeholders, the SECP said on Tuesday.

Under the proposed changes, the annual income threshold for borrowers eligible for microfinance loans would rise to Rs1.5 million from Rs1.2 million, according to the regulator.

For small businesses, the SECP has proposed lifting the maximum annual turnover threshold to Rs400 million from Rs150 million. The threshold for medium-sized businesses would rise to Rs2 billion from Rs800 million under the proposal.

The SECP said the proposed small and medium enterprise thresholds are aligned with recent changes introduced by the State Bank of Pakistan. The amendments remain at the consultation stage, meaning no revised limits take effect until the process concludes.