The Mauritius Financial Services Commission is issuing the Financial Services (Peer-to-Peer Lending) Rules 2020 with the objective of fostering innovation and furthering access to finance in Mauritius.

The P2P Lending Rules are intended to support the offer and execution of P2P lending in the non-bank financial services sector of Mauritius. Under these rules, a peer-to-peer operator will facilitate access to finance by matching borrowers and lenders on its online platform. According to the FSC's Chief Executive, Mr Dhanesswurnath Thakoor, “the P2P lending rules is [sic] part of the broader spectrum that the FSC is working on for consolidating the regulatory framework for Fintech in Mauritius. Operators in the non-bank financial services sector can now leverage on P2P networks for offering equivalent and sound alternatives to promote access to credit and raise capital.”

Limits on P2P lending

There must be an undertaking from the directors to the effect that the applicant for a licence will ensure that a lender: (i) does not lend more than MUR1.5 million (in the aggregate) through P2P operators in any 12-month period, if the lender is a natural person; and (ii) does not lend more than MUR3 million (in the aggregate) through P2P operators in any 12-month period, if the lender is a legal person.

There must also be an undertaking from the directors to the effect that the applicant will ensure that a borrower: (i) shall not borrow through a P2P operator an amount less than MUR50,000; (ii) shall not borrow more than MUR1 million (in the aggregate) through P2P operators at any time until at least one-third of the amount borrowed is reimbursed, if the borrower is a natural person; and (iii) shall not borrow more than MUR3 million (in the aggregate) through P2P operators at any time until at least one-third of the amount borrowed is reimbursed, if the borrower is a legal person.

The reimbursement period of lending executed through P2P lending platforms shall not exceed 84 months. The Government has changed the Financial Services (Consolidated Licensing and Fees) Rules 2008 accordingly.