Islamabad :– Securities and Exchange Commission of Pakistan (SECP) has notified significant amendments in the lending part of the Non-Banking Finance Companies (NBFC) Regulations, 2008, with a view to encourage innovation, and enhance access to finance through technology-driven solutions.
SECP’s vision to promote fintech innovation and a conducive environment for startups, the experience requirement for founders and chief executive officers of lending NBFCs has been relaxed to encourage young entrepreneurs to participate in the regulated digital lending ecosystem. Additionally, a simplified Borrower Factsheet has been introduced to enable transparent and seamless borrower onboarding, ensuring that customers fully understand loan terms, pricing, and obligations.
To facilitate credit enhancement and strengthen access to finance for underserved segments, a new class of activity, namely, Credit Guarantee Institution (CGI) has been introduced under the NBFC framework. These institutions will provide credit guarantees to lenders and promote risk sharing in the financial sector. The regulations also include enhanced exposure limits and sustainability standards for CGIs to ensure effective risk management and long-term stability.
Revisions include reforms in the peer-to-peer (P2P) lending space by revamping the existing structure, allowing securitized lending, and enhancing prudential limits to ensure responsible and sustainable growth. The amendments further aim to protect lenders, promote transparency in fund flows, and mandate enhanced disclosure requirements for P2P platforms. In addition, new measures have been introduced to ensure the financial sustainability and sound governance of P2P service providers.
For the non-banking microfinance sector (NBMFCs), the loan size limits for microenterprise and housing finance have been increased from PKR 1.5 million to PKR 3 million, while the definition of microenterprise has been revised to expand outreach and enable small businesses to access higher-value credit.
To promote gender diversity and inclusive governance, the minimum number of female directors on the boards of NBMFCs has been increased from one to two, with a requirement that at least one female director shall be independent.
The amendments also make reporting to Credit Bureaus mandatory for all NBFCs, ensuring comprehensive credit history building, improved borrower assessment, and enhanced credit discipline across the financial sector.
These reforms reflect SECP’s continued commitment to fostering a responsible, inclusive, and technology-enabled lending ecosystem, while ensuring investor protection, market transparency, and financial sector resilience.
Sohail Majeed is a Special Correspondent at The Diplomatic Insight. He has twelve plus years of experience in journalism & reporting. He covers International Affairs, Diplomacy, UN, Sports, Climate Change, Economy, Technology, and Health.
