The Securities and Exchange Commission of Pakistan (SECP) has granted approval for launch of a peer-to-peer (P2P) lending platform under the first cohort of regulatory sandbox to support and encourage fintech revolution in the country. Peer-to-peer lending is an innovative alternative digital platform that connects borrowers with individual lenders, who come together to meet the borrowers’ loan requirements. Peer-to-peer lending helps the borrowers give out short-term loans that enable the small and medium enterprises (SMEs) to scale up their business, eventually qualifying them to take bigger bank loans, said a press release issued by the SECP on Wednesday. This approval for testing and experimentation of a peer-to-peer lending platform by SECP is also attributed towards development of an ecosystem for SME financing.
Published in The Express Tribune, November 19th, 2020.