Yesterday the chairman of Securities and Exchange Commission of Pakistan (SECP), Zafar Hijazi introduced an Islamic financing facility centre in Rawalpindi.
The aim of this facility centre is to let people avail affordable microfinancing services based on Shariah principles to buy motorcycles or other product for their needs.
Four Modarabas will be operating at this centre namely, Allied Rental Modaraba, First Habib Modaraba, Orix Modaraba and Trust Modaraba.
They will provide customers with cheaper, affordable financing rates compared to the market rates, within Shariah-compliant principles. The rates for microfinancing offered by the modarabas will range from 20-25%, which is cheaper compared to the market rates of 40-45%.
Trust Modaraba CEO Basheer A Chowdry said that the facility will be offered through the sales network of one of the major motorcycle retailers M/S Qazi Trading Company, so that buyers can be reached as efficiently and as quickly as possible. They will be offering microfinancing for motor bikes in the beginning.
The Modarabas will be providing microfinancing facilities for the customers for other products also in the future. More outlets will also be included in due time.
According to a nationwide survey conducted by the SECP, illegal and unlicensed lending practices were being carried out through the entire country. He said that no one should be able to carry out any kind of micro financing business without getting a license from SECP.
The Chairman said that such unlicensed activities will not be tolerated by the commission and steps will be taken against them to minimize and eliminate it.
Congratulating the modaraba sector on opening the centre in Rawalpindi, he told them to set up centres in various areas of the country to provide ease of access for customers anywhere for a better financing facility.
The purpose of these centres is also to provide the public to avail of consumer finance in a regulated form at affordable rates.
via The News
Why SECP? Does it has mandate for such activities specially consumer financing?