In Pakistan, many low-income consumers rely on informal lending due to the lack of access to traditional banking services. This has led to exorbitant interest rates from unregulated shops. While microfinance has filled some gaps, it remains insufficient for a large segment of the population. Enter QistBazaar, co-founded by Arif Lakhani, which aims to offer a regulated alternative for consumer credit. With a focus on durable goods, QistBazaar has disbursed over 55,000 loans worth Rs3.4 billion since its inception. Unlike many fintech companies, QistBazaar combines digital channels with physical branches to reach customers who may not have smartphones. Despite facing challenges such as higher borrowing costs due to its NBFC status, the company is poised to benefit from monetary easing and increased consumer financing from banks. As QistBazaar continues to grow, it raises the question of whether NBFCs can effectively expand personal credit in Pakistan and provide a viable solution for underserved consumers.
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