Regulatory Alerts2026-07-02
Added · Updated
Circular 15 of 2026 – Inclusion of Lending Non-Banking Finance Companies as Participating Financial Institution in the Government Mark-up Subsidy Scheme and Risk Coverage Scheme for Affordable Housing Finance
The Securities and Exchange Commission of Pakistan includes Lending Non-Banking Finance Companies as Participating Financial Institutions in the Prime Minister Apna Ghar Program, subject to strict eligibility criteria including a valid license, minimum equity requirements, and non-performing loan ratios below 10 percent. Participating entities must obtain a No Objection Certificate, adhere to specific underwriting standards such as a 90 percent loan-to-value ratio and a 65 percent debt-to-income cap, and engage independent auditors to verify loan authenticity and subsidy claims. The circular mandates quarterly submission of mark-up and credit loss subsidy claims within seven working days, with penalties and reimbursement obligations for incorrect claims, while suspending further financing if non-performing loans reach 10 percent of the program portfolio.