The Securities and Exchange Commission of Pakistan (SECP) imposed pricing caps on digital personal loans by mobile applications.
In a significant move towards promoting responsible lending and consumer safety, the Securities and Exchange Commission of Pakistan (SECP) issued an all-encompassing set of requirements for Non-Banking Financial Companies (NBFCs) offering digital personal loans via mobile applications, said a press release issued here on Monday. The requirements set a maximum limit for the annual profit rate and the total cost that can be charged by a Nano lender to the borrower.
The total cost cap for Nano loans will encompass all associated fees, including processing charges, service fees, verification fees, loan handling fees, interest charges, late payment penalties, and any other applicable charges. The cumulative price of a loan shall not exceed the aggregate amount of the principal loan amount.—APP
