SECP introduces rate caps for digital personal loans

News Image

By MG News | September 25, 2023 at 09:02 PM GMT+05:00

0:00

September 25, 2023 (MLN): In a significant step toward promoting responsible lending and ensuring consumer safety, the Securities and Exchange Commission of Pakistan (SECP) has issued a comprehensive set of requirements for Non-Banking Financial Companies (NBFCs) that offer digital personal loans through mobile applications, as stated in a press release issued today.

The requirements set a maximum limit for the profit rate that can be charged by a nanolender to the borrower.

The total cost cap for nanoloans will encompass all associated fees, including processing charges, service fees, verification fees, loan handling fees, interest charges, late payment penalties, and any other applicable charges.

The cumulative price of a loan shall not exceed the aggregate amount of the principal loan amount.

Moreover, limits have been set for loan rollover. To ensure the uniformity and standardization for the profit rate calculation formulas and brief illustration has been specified in the circular issued by SECP.

SECP is actively evaluating and adapting policies to improve financial access and combat manipulative business practices.

The measures, developed through consultation with stakeholders and industry participants, aim to balance financial inclusion and consumer protection against excessive debt burden.

Copyright Mettis Link News

Related News

Name Price/Vol %Chg/NChg
KSE100 132,576.99
161.03M
-0.62%
-826.20
ALLSHR 82,983.68
903.36M
-0.25%
-204.38
KSE30 40,358.80
56.86M
-0.72%
-292.66
KMI30 190,727.32
67.92M
-0.71%
-1356.60
KMIALLSHR 55,698.48
457.08M
-0.27%
-149.22
BKTi 36,242.06
11.15M
-0.50%
-180.82
OGTi 28,323.42
10.71M
-0.40%
-114.19
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 111,315.00 112,590.00
108,625.00
2100.00
1.92%
BRENT CRUDE 70.13 70.71
69.61
-0.02
-0.03%
RICHARDS BAY COAL MONTHLY 97.50 0.00
0.00
1.45
1.51%
ROTTERDAM COAL MONTHLY 108.00 109.00
107.95
0.90
0.84%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 68.29 68.94
67.70
-0.04
-0.06%
SUGAR #11 WORLD 16.54 16.61
16.08
0.41
2.54%

Chart of the Day


Latest News
July 09, 2025 at 11:58 PM GMT+05:00

Auction Result: Govt raises Rs1.5tr through T-bills


July 09, 2025 at 05:27 PM GMT+05:00

Gold price in Pakistan falls Rs3,000 per tola


July 09, 2025 at 05:26 PM GMT+05:00

UBL crowned top performing Primary Dealer in FY25


July 09, 2025 at 05:11 PM GMT+05:00

SECP approves name change for Secure Logistics



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg