Regulatory Alerts2023-09-25
Added · Updated
Circular 15 of 2023 – Pricing Caps for Digital Loan Providers (NBFCs)
The Securities and Exchange Commission of Pakistan mandates that Lending Non-Banking Finance Companies providing digital nano-lending limit loan tenors to 30 days, with a maximum total tenure of 90 days including up to two rollovers. These entities must cap the Annualized Percentage Rate at ten times the State Bank of Pakistan's Policy Rate and ensure that total recoverable costs, including interest and fees, do not exceed the principal amount. Compliance is required within seven days of the circular's issuance, with non-compliance subject to penal provisions under the Companies Ordinance, 1984.
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