CONSUMER CREDIT LICENSE. CREDIT PROVIDER LICENSING

Non-banking vehicle helping consumers find financing. Equity capital – EUR 40 000. Permit issue (licensing) time – 1 month.

Consumer credit providers offer fast and easy consumer finance credits as alternative to complicated bank financing. Consumer Credit provider – entity (company), whose business is to provide or commit itself to provide consumer credit from his own capital.

Fast and easy licensing, friendly regulation

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Latest amendments to the Lithuanian Consumer Credit regulation allows fast and easy licensing of Consumer Credit Providers. It takes a bit more than 1 month (30 working days) to be included in to the Public List of Consumer Credit Providers or Peer to Peer (P2P) platform operators. Bank of Lithuania (Regulator) currently considered as one
of the most business oriented and progressive regulators in European Union (EU/EEA).

Passporting of Consumer Credit license in European Union (EU/EEA area)

Consumer Credit providers or Peer to Peer (P2P) platform operator’s license issued by the Bank of Lithuania – EU member state financial regulator. Traditional passporting of Consumer Credit or Peer to Peer services within the EU/EEA area can be achieved combining license with Electronic Money Institution, Payment Institution or other passportable license.

List of documentation to be provided for Consumer Credit licensing

Company can be included in to the Public List of Consumer Credit Providers provides submitting following documentation:

– Application for entering on a Public List of Consumer Credit Providers.

– Information on the public register in which the supervisory authority can verify basic personal data and information on the shareholders and managers, proving their compliance with the requirements laid down law.

– Rules for assessing the creditworthiness of borrowers.

– Information on registers and information systems referred to for the purposes of assessing the creditworthiness of borrowers.

– Business continuity plan (business plan).

– List of consumer credit intermediaries acting on behalf of a consumer credit provider, if any.

Business Continuity Plan and Rules for Assessing the Creditworthiness of Borrowers are the most complex documentation to be prepared during the licensing procedure. The plan should provide measures and procedures ensuring that Consumer Credit Providers activities carried out continuously, without interruption, ensuring a smooth administration of the Consumer Credit contracts and continuing contractual obligations fulfilment in cases of unforeseen circumstances. Being the most experienced financial licensing advisor ECOVIS ProventusLaw assists in preparation of the Business Continuity Plan, other licensing documentation, accounting, reporting, audit and setting up all Consumer Credit business.

More about FinTech licensing – www.ecovis.lt/fintech

More about ECOVIS experience – https://ecovis.lt/fintech/why-lithuania/

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