SECP Introduces Consumer Protection for Microfinance Borrowers.

SECP has introduced Consumer #Protection Principles for Pakistan Microfinance Network and Non-Banking Microfinance Finance Companies (NBMFCs). The new rules require these firms to issue a Key Fact Statement (KFS) to borrowers before #loan disbursement. This ensures #transparency and helps borrowers make informed decisions.

NBMFCs must clearly outline loan terms, including fees, #interest rates, and #risks. Loan contracts must be available in local languages, with copies given to borrowers and kept on #record. Once a loan is issued, terms cannot change before #maturity.

Firms must also provide accessible information through multiple #channels, including online and mobile platforms. Staff must be trained in handling #complaints. Additionally, NBMFCs must report gender-disaggregated data as per Circular No.03 of 2025.

These measures align with existing #policies and the Women Equality in Finance initiative. The SECP aims to enhance financial #inclusion and ensure borrowers are treated fairly.