SECP’s permission to non-bank microfinance companies (NBMFCs) to reschedule the loan portfolio not only helped NBFCs to adjust their portfolio at risk but also resulted in extending relief to 932,862 individuals and micro-enterprises that have borrowed over Rs. 17 billion from non-bank microfinance companies (NBMFCs), as of May 31, 2020.
Out of these, 796,893 were facilitated through deferment of principal repayments of over Rs. 13.1 billion by six NBMFCs, while 135,969 benefited through rescheduling loans of Rs. 3.9 billion by four companies.
On March 31, 2020, the SECP had relaxed the regulatory requirements for the non-banking finance sector allowing them to defer or reschedule the loan repayments to their borrowers. It was part of SECP’s efforts to provide relief for mitigating adverse effects of COVID-19 pandemic and the ensuing lockdowns.
SECP had also urged the companies to adopt a considerate approach to accommodate the borrowers who belong to either unprivileged or underprivileged segments of the society and allowed NBMFCs to accept borrowers’ requests made through electronic means or phone calls.