The maximum limits of the borrowers’ aggregate exposure shall not exceed Rs. 350,000/- for general loans, Rs. 3,000,000/- for housing loans and microenterprise loans. However, the aggregate exposure of the borrowers who are eligible to avail both general and microenterprise loans shall not exceed Rs. 3,000,000/-.
The MFBs shall develop an internal mechanism to monitor the overall exposure of their borrowers to manage credit risk and minimize the risk of borrowers’ over-indebtedness. At the time of granting facility, MFBs shall ensure that total exposure of their clients does not exceed their total repayment capacity as determined under the criteria laid-out in the MFBs’ credit policy.
b) Regulation R-7: ‘Credit Report Check’
Before allowing any credit facility, the MFBs shall obtain Credit Information Report (CIR) from the licensed Credit Bureaus of which they are a member or from electronic Credit Information Bureau (eCIB) of State Bank of Pakistan.
MFBs shall assign due weightage to the CIRs in addition to their risk management policies and approved criteria while undertaking credit appraisal of the prospective borrower. Credit applications, however, may not be turned down solely on the basis of overdue amount reported in the CIRs.
The MFBs shall also ensure that CIR is not older than two months at the time of sanctioning credit limits.
c) Regulation O-8: ‘Reporting to Electronic Credit Information Bureau (eCIB)-SBP’