SECP Issues Guidebook for NBFCs to Promote Halal Lending

SECP published a guidebook providing practical guidance to Non-Banking Finance Companies on developing and offering Shariah-compliant financing products. The document outlines risk-sharing and asset-backed models for halal lending, covering products such as installment plans, micro-loans, housing finance, and digital financing. The guidebook is available on SECP's website for companies seeking to enter or expand in the Islamic finance market.

Affected parties include existing and prospective lending NBFCs in Pakistan, particularly those seeking to serve consumers who do not use conventional bank loans. Companies currently offering or planning Shariah-compliant products should review the guidebook to ensure their product structures align with SECP expectations. The initiative is expected to increase competition in the non-bank financial sector, potentially benefiting consumers through better pricing and improved transparency.