SECP grants licences to three new housing finance companies

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has granted licences to three new housing finance companies during the fiscal year ended June 30, 2021, a statement issued by the commission said on Wednesday.

The SECP believes that a revitalised housing finance companies sector will contribute in catering to the huge demand for affordable housing finance in the country.

The newly licensed housing finance companies included Pakistan Housing Finance Company Limited, Trellis Housing Finance Company Limited and Asaan Ghar Finance Limited. For the last one decade, the country has had no licensed housing finance company.

While cognizant of the huge gap in affordable housing finance space, the commission, in collaboration with the Pakistan Mortgage Refinance Company and the World Bank Group, led off a comprehensive awareness campaign to highlight the opportunities for the potential new entrants to tap this vast underserved market, the statement said.

In this regard, a number of webinars were conducted to impart information on regulatory framework and legal requirements to form housing finance companies.

The SECP also guides prospective investors on available funding mechanism for housing finance companies and assists them in preparing workable housing finance company business models.

The commission also supports the proposal to include these housing finance companies in the government’s markup subsidy scheme for housing finance.
The abovementioned initiatives translated into three new entrants into the housing finance market, who are expected to commence operations during the current year, it added.

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