SECP Proposes Rs 5 Million Microfinance and Housing Loan Limit: What Changes and How to Comment
The SECP proposes a Rs 5 million cap for microenterprise and housing loans and new SME bands. See what changes, what stays the same and how to send comments.
Short answer: The SECP has proposed raising the maximum microenterprise and housing loan from non-banking microfinance companies to Rs 5 million, and the income limit for individual borrowers from Rs 1.2 million to Rs 1.5 million. It is a draft, not law. Comments go to lending.nbfc@secp.gov.pk within 14 days of the 29 September 2026 release.
A tailor wants a Rs 3 million loan to buy machines and a rented shop. A family wants to build a second floor. Both are told the loan ceiling at their microfinance company is too low. A proposal from the Securities and Exchange Commission of Pakistan (SECP) is aimed at exactly that gap.
We read the SECP press release dated 29 September 2026 on its own website. This is an explainer, not a news report, because the release is more than two days old. The proposal is still open for comment, so it still matters.
The proposal raises the cap to Rs 5 million
The SECP proposes to raise the maximum loan limit for microenterprise and housing finance loans from non-banking microfinance companies to Rs 5 million. It also proposes raising the income threshold for individual borrowers in this sector from Rs 1.2 million to Rs 1.5 million.
A microenterprise is a very small business, such as a one-person workshop or a small shop. A non-banking microfinance company is a lender licensed by the SECP, not a bank, that gives small loans. The release does not say what the present loan cap is, so we do not state it.
| Item | Today | Proposed |
|---|---|---|
| Maximum microenterprise and housing loan | Not stated in the release | Rs 5 million |
| Income threshold, individual borrowers | Rs 1.2 million | Rs 1.5 million |
| Small enterprise turnover | Up to Rs 150 million | Rs 30 million to Rs 400 million |
| Medium enterprise turnover | Rs 150 million to Rs 800 million | Rs 400 million to Rs 2 billion |
The draft also redraws what counts as small and medium
For SMEs, the SECP proposes new annual turnover ranges. Small enterprises would be those with turnover from Rs 30 million to Rs 400 million, against the present limit of up to Rs 150 million. Medium enterprises would run from Rs 400 million to Rs 2 billion.
Today the medium band runs from Rs 150 million to Rs 800 million, according to the release. The change would let non-banking finance companies lend to larger businesses under the SME category. The SECP says the aim is to help them respond to the financing needs of businesses, households and individuals.
If you run a business and want the bank route instead, our overview of SME loans from Pakistani banks and schemes covers it.
It is a draft amendment, so nothing changes for borrowers yet
The changes are draft amendments to the Non-Banking Finance Companies and Notified Entities Regulations, 2008, issued for consultation. Until the SECP notifies the final text, the current limits apply. A lender cannot lawfully use the proposed limits today.
The SECP says the draft is available on its website. We did not find a date by which the SECP will finalise the rules, and the release gives none. A proposal can change after comments, so the final numbers may differ.
How to send your comments to the SECP
Stakeholders may send comments within 14 days to lending.nbfc@secp.gov.pk. The release does not say from when the 14 days count. If they run from 29 September, the window closes around 13 October, so send yours at once.
- Download the draft amendments from the SECP website and read the clauses on microenterprise and housing loans.
- Write which limit or clause you are commenting on, and why.
- Give a reason and a number where you can, such as the cost of a plot, a machine or a house extension.
- Email it to lending.nbfc@secp.gov.pk, with your name and organisation if you represent one.
- Keep a copy of the email and the time you sent it.
A licensed lender is still the safest place to borrow
A higher limit helps only if the lender is licensed. The SECP's other release on 18 September approved Shaamilkar Tajir, a digital application offering Shariah-compliant financing of up to Rs 3 million to eligible small businesses, run by an SECP-licensed company.
The same release says licensed lending NBFCs provided about Rs 253 billion through 2.5 million loans to micro, small and medium enterprises between July 2025 and June 2026. Before you borrow from any app, follow the steps to check whether a lending app is SECP licensed.
For a woman-led business, a separate SBP facility may fit better, covered in our report on the SBP guarantee for women borrowers.
Common questions
Is the Rs 5 million limit in force now?
No. It is a proposal in draft amendments issued for public consultation. It becomes law only when the SECP notifies the final regulations.
Who would the higher limit apply to?
It would apply to borrowers of non-banking microfinance companies, for microenterprise and housing finance loans. Individual borrowers would qualify with income up to Rs 1.5 million instead of Rs 1.2 million.
Does this affect bank loans?
No. The proposal is for non-banking finance companies under SECP regulation. Banks are regulated by the State Bank of Pakistan.
How long do I have to comment?
The release says 14 days. It does not say when they start, so assume 29 September and send your comments now.
Where is the draft?
The SECP says it is on the SECP website. Look under its laws or draft regulations section at secp.gov.pk.
What is Shaamilkar Tajir?
It is a digital application approved by the SECP on 18 September 2026 that offers Shariah-compliant financing of up to Rs 3 million to eligible small businesses, to buy inventory from approved suppliers.
How we verified this
What we checked, where we read it, and what we could not confirm.
We read the SECP press releases dated 29 September 2026 and 18 September 2026 on secp.gov.pk on 11 October 2026. We did not open the draft regulations themselves, so clause numbers and the current cap are not stated. The Urdu copy of the first release was unreadable in our extraction, so we relied on the English text.
About the author
Senior Writer, Public Services and Technology
Shahid joined us in 2024 as an author. He is a senior contributor to Pakistan's leading technology websites. He writes detailed articles, mostly covering his expertise in the latest tech, mobiles, apps, gadgets, and step-by-step guides. His ideology is to help people understand the latest trends and explain complex methods through very easy-to-understand guides.
