Securities and Exchange Commission of Pakistan (SECP) has approved a Shariah-compliant digital financing facility for small businesses. The new initiative will allow small business owners to access financing of up to Rs. 3 million through a digital application.
The facility has been introduced to improve access to formal credit services for small businesses. Many small entrepreneurs face difficulties in obtaining traditional financing due to limited access to banking facilities.
Under the new system, business owners can apply for financing through the “Shamil Kar Tajir” app. The approved financing will help them purchase business goods from registered suppliers.
The SECP said the digital financing facility aims to connect more small businesses with the formal financial system. The initiative is expected to support entrepreneurs who previously struggled to secure business financing.
Digital Financing Facility for Small Businesses
The new digital loan facility will provide small business owners with a simpler financing process. Applicants will be able to use a digital platform instead of following lengthy traditional procedures.
The financing facility will operate under Shariah-compliant principles. It will allow eligible businesses to purchase required goods from approved suppliers through the digital system.
SECP Chairman Dr. Kabir Ahmed Sidhu said digital distribution channels can help expand financing access for businesses with limited credit opportunities.
He added that the regulator is also focusing on consumer protection measures as digital financial services continue to grow.
SECP Highlights Growth in Small Business Financing
The SECP reported that non-banking companies provided Rs. 253 billion in financing to small businesses during the previous year.
According to the regulator, around 2.5 million people received financing support for small businesses during the same period.
The commission said digital solutions can further improve financial inclusion by making financing services more accessible.
Small businesses play an important role in economic activity, but many entrepreneurs face challenges in accessing formal credit. The new digital financing system aims to address some of these challenges.
Focus on Secure Digital Lending
The regulator emphasized the importance of responsible lending practices as digital financing expands.
The SECP said it will continue working on measures that balance easier access to financing with consumer protection.
The Shamil Kar Tajir app-based facility is part of broader efforts to promote digital financial services and support small businesses in Pakistan.
In other news read more about: Rs. 100 Petrol Relief Scheme Faces Technical Issues on First Day of Launch
Through this initiative, eligible entrepreneurs will have another option to obtain business financing and purchase essential goods through approved channels.
