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SBP Enhances Loan Limit By Rs2m For Housing, Micro Enterprise


KARACHI– The State Bank of Pakistan announced Monday to increase the limits for housing finance and micro enterprise loans to Rs3 million from the existing limit of Rs1 million if money is borrowed from microfinance banks.

Housing finance refers to the finance to meet the various needs related to housing, such as purchase of land, acquisition of a flat, construction or extension of a house.

Similarly, the maximum size of general loans has also been increased from Rs150,000 to Rs350,000.

Annual income eligibility for general loans and housing loans has been increased to Rs1.2 million and Rs1.5 million respectively.

The limit to lend against gold collateral has been enhanced to meet borrowers’ immediate domestic or emergency needs.

“The decision to increase the limit of housing finance loans has been made in view of the fact that the existing loan limit was insufficient to promote low cost housing finance through MFBs,” a press release read.

The limits for lending to micro enterprises has been enhanced considering the large unmet demand from Micro and Small Enterprise.

“These initiatives would further support the micro borrowers and enterprises and an early revival of economic activities in the current challenging times,” the press release said.