Three new housing finance companies licenced by SECP in FY21

Three new housing finance companies (HFCs) were licenced for the fiscal year ending 30 June 2021 by the Securities and Exchange Commission of Pakistan (SECP).

In its view, the SECP is making a contribution to responding to Pakistan's enormous need for affordable housing.

Pakistan Housing Finance Company Limited, Trellis Housing Finance Company Limited, and Asaan Khar Finance Limited are among the recently approved HFCs. Before then, in the past decade no HFC was licenced.

Although the SECP was aware of the large gap in affordable home financing, it cooperated with Pakistan Mortgage Refinance Company and World Bank Group to launch a full awareness campaign to highlight possible new market player prospects. A number of webinars were held to enlighten the HFCs about the regulatory framework and legislative requirements.

The SECP counselled potential investors and supported them in the development of feasible HFC business models by means of the available funding mechanism for housing financing businesses. It also supports the idea of include HFCs in the government's home finance subsidy scheme.

These measures have translated into the housing financing market, which is scheduled to start operating this year.

Post a Comment

Please do not enter any spam link in the comment box.