SECP approves Shariah-compliant digital financing for small businesses

According to the SECP, businesses registered with the Tajir app will be able to obtain financing to buy business goods from approved suppliers. The new digital financing facility will give small businesses access to the formal credit system.

SECP Chairman Dr Kabir Ahmed Sidhu said that businesses deprived of financing would be given loans through digital distribution. He said the commission was increasing digital financing while also ensuring consumer protection.

According to the SECP, non-banking companies provided small businesses with loans of Rs253 billion over the past year. During the year, 2.5 million people were given financing for small businesses.