Regulatory Alerts2023-08-07
Added · Updated
Circular No.10 of 2023-Requirements for Lending NBFCs providing digital nano-lending
Lending Non-Banking Finance Companies providing digital nano-lending must limit individual loans to Rs 25,000 with a tenor of up to 90 days, while the aggregate nano-lending to any single borrower across all NBFCs cannot exceed Rs 75,000. The regulation prohibits the compounding of markup and mandates that apps and websites display specific Urdu and English warnings regarding high-interest rates and over-indebtedness risks, alongside a cost calculator on the homepage. Compliance with these exposure limits, disclosure requirements, and auditor selection criteria is effective immediately upon issuance, with non-compliance subject to penal provisions under the Companies Ordinance, 1984.
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