Procedure For Acquiring A Money Lending License In Nigeria

In the past few years, there has been an increase in the number of Fintech startups offering lending services to the public. One reason for this increase is as a result of the need for individuals and small businesses to access loans where traditional loan institutions required cumbersome collateral and attracted prohibitive interest rates.

In contrast, Fintech startups offer loans at affordable rates with little or no collateral.  To offer such services, startups may register as Microfinance Banks or Money Lending companies-depending on the scope of their business operations. This article will focus on Money Lenders and the requirements and importance of registering as such.

A Money Lender's License is required for enterprises in the business of money lending. Money lending outfits are regulated by the money lending laws of the various states of Nigeria.  By the Lagos State Money Lenders' Law, any person who lends money at an interest or who lends a sum of money