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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SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN Specialized Companies Division Policy, Regulation and Development Department

No. SC/NBFC-1-196/Circular/2023/05
August 7, 2023

Circular No. 10 of 2023

Subject: Requirements for Lending NBFCs providing digital nano-lending

The Securities and Exchange Commission of Pakistan (the “Commission”) in exercise of powers conferred under sub-section (3) of section 282B of the Companies Ordinance, 1984 (XLVII of 1984) read with regulation 28(da) of the NBFC Regulations, 2008 and in addition to requirements under Circular 15 of 2022 dated December 27, 2022, hereby directs that all Lending Non-Banking Finance Companies (NBFCs) providing digital nano-lending to comply with requirements as contained in this Circular.

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Lineage: Amended

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Timeline

Amended 1 time · last 2023-09-25

2023-09-25SECPCircular 15 of 2023 – Pricing Caps for Digital Loan Providers (NBFCs)amends

Source: Securities and Exchange Commission of Pakistan — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works