SECP proposes Rs5m housing loan limit

The Securities and Exchange Commission of Pakistan (SECP) has proposed raising the maximum limit for microfinance and housing loans to Rs5 million as part of proposed amendments aimed at expanding access to finance. According to a notification released by the SECP, the proposed amendments have been issued for consultation with stakeholders. Under the proposals, the annual income threshold for borrowers seeking microfinance loans will be increased from Rs1.2 million to Rs1.5 million. The commission has also proposed revisions in turnover thresholds for small and medium-sized enterprises (SMEs). For small businesses, it called for raising the maximum annual turnover threshold to Rs400 million from Rs30 million, while the limit for medium-sized enterprises could be increased to Rs2 billion from Rs800 million. The SECP said the proposed SME thresholds were aligned with recent changes introduced by the State Bank of Pakistan. The commission has invited stakeholders and other interested parties to submit comments and suggestions for the proposed amendments.