The economic and financial crisis has created stricter credit
terms for clients to obtain credit from banking institutions. This
has subsequently led to the creation of niche Financial
Institutions providing short-term, unsecured loans to clients who
may need a small amount of money. This activity is commonly known
as micro lending, short term loans or payday loans.
A number of operators in this field have found Malta to have the
right regulatory framework for this type of activity. In fact, the
Malta Financial Services Authority has already licensed a number of
institutions carrying out the business of lending, specializing in
short-term unsecured loans.
An institution providing micro lending is able to grant loans of
small amounts to borrowers, which need to be paid within a period
ranging from 30 days to 6 months. These loans are often required by
clients who are in emergency financial situations and who satisfy
the stipulated minimum requirements posed by the
