SECP issues Guidebook for NBFCs to promote halal lending

Aimed at making loans accessible to people who avoid interest (riba), the Securities and Exchange Commission of Pakistan has issued a practical guidebook to help lending Non-Banking Finance Companies (NBFCs) structure Shariah-compliant financing products

ISLAMABAD, (UrduPoint / Pakistan Point News - 15th Apr, 2026) Aimed at making loans accessible to people who avoid interest (riba), the Securities and Exchange Commission of Pakistan has issued a practical guidebook to help lending Non-Banking Finance Companies (NBFCs) structure Shariah-compliant financing products.

The guideline provides guidance to NBFCs to develop and offer halal financing options for people who do not use conventional bank loans.

According to a press release issued by the SECP, the book will enable consumers to access Shariah-compliant products such as installment plans, micro-loans, and housing finance.

Shariah-compliant digital financing will expand access for underserved groups, enabling low-income households, small businesses, farmers, freelancers, and gig workers to obtain financing more easily without traditional credit histories.

The Shariah-compliant lending products are based on risk-sharing and asset-backed models, promoting responsible and ethical finance while reducing the risk of exploitation and hidden charges.

There is a growing market demand for Islamic financial services. This initiative is expected to enhance competition in the non-bank financial sector. As more NBFCs offer Islamic financing products, customers will benefit from better pricing, improved transparency, and higher service standards.

Currently, five Lending NBFCs are fully Shariah-certified and are offering products in areas such as Buy-Now-Pay-Later (BNPL), nano-lending, housing finance, and microfinance. Several other companies have also approached SECP for guidance on developing Shariah-compliant products.

SECP’s analysis of 265 products offered by 89 Lending NBFCs shows that around 16 to 17 percent of existing products are already Shariah-compliant, indicating strong momentum in the sector.

The SECP has been implementing a Strategic Action Plan to support Pakistan’s transition towards a Shariah-compliant financial system, in line with constitutional requirements and the directives of the Federal Shariat Court.