Key Takeaways
- SECP has approved a Rs. 3 million digital loan facility for small businesses.
- The facility will be distributed through the 'Shamil Kar Tajir' app.
- This move aims to provide greater access to formal credit for small businesses.
The Securities and Exchange Commission of Pakistan (SECP) has approved a Shariah-compliant digital financing facility for small businesses, allowing them to obtain up to Rs. 3 million through a digital app.
Under the new facility, small business owners will be able to access financing through the 'Shamil Kar Tajir' app to purchase business goods from approved suppliers.
SECP Chairman Dr. Kabir Ahmed Sidhu stated that the digital financing facility would provide small businesses with greater access to the formal credit system, particularly those that have previously been unable to obtain financing.
Dr. Sidhu added that the regulator is also focusing on consumer protection as digital financing expands, ensuring that small business owners are well-protected during the application and usage process.
According to the SECP, nonbanking companies provided Rs. 253 billion in financing to small businesses over the past year, with financing provided to 2.5 million people during the same period.
The new facility is expected to significantly enhance the financial capabilities of small businesses, enabling them to grow and expand their operations more effectively.
By leveraging digital distribution channels, the SECP aims to bridge the gap in credit access for small businesses, particularly those in rural or underserved areas.
This initiative is part of a broader strategy to modernize the financial sector in Pakistan, making it more inclusive and accessible for a wider range of businesses.
