On 14 August 2020, the Minister of Finance, Economic Planning and Development (Minister of Finance) issued the Financial Services Rules 2020 (Peer to Peer Lending Rules) (GN 184 of 2020). The Peer to Peer Lending Rules enable the operation of Peer to Peer lending platforms in Mauritius by P2P Operators which hold Peer to Peer Lending Licences issued by the Financial Services Commission (FSC). The Peer to Peer Lending Rules apply to Peer to Peer Operators licensed by the FSC and came into force on 15 August 2020.
As indicated below, there are specific limits which apply to lenders and borrowers whenever they transact through P2P Operators:
|Borrower who is a natural person||Maximum aggregate of MUR 1 million with a minimum of MUR 50,000|
|Borrower who is a legal person||Maximum aggregate of MUR 3 million with a minimum of MUR 50,000|
|Lender who is a natural person||Maximum aggregate of MUR 1.5 million|
|Lender who is a legal person||Maximum aggregate of MUR 3 million|
(MUR 40 = USD 1)
It is to be noted that these lending limits will not apply to sophisticated investors who lend through P2P Operators to borrowers who are not resident in Mauritius and when the lending occurs in any other currency. Furthermore, the reimbursement period for the lending through Peer to Peer Lending platforms must not exceed 84 months. For completeness, a Peer to Peer Lending platform is an online portal or electronic platform that facilitates the offering, execution or issuance of funds between prospective lenders and borrowers.
Vaishali Damonaiko, pupil to Sharmilla Bhima, also helped with the preparation of this article.
Originally published by Appleby, September 2020
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