Regulatory AlertsLesotho: lending & credit regulation
RegulatedLesotho lending regulated by CBL under Money Lenders Order 1989 & Microfinance Regs 2014
- Lead regulator
- Central Bank of Lesotho (CBL)
- Also involved
- Ministry of Justice (Money Lenders licensing)
- Core law
- Money Lenders Order, 1989
- Entry capital
- LSL 1m (Microfinance)
- Approval timeline
- —
- Customer assets
- —
- Data protection
- —
- Sandbox
- No
Lending activities are primarily supervised by the Central Bank of Lesotho (CBL). The Money Lenders Order 1989 serves as the foundational licensing regime for general money lending, while the 2014 Microfinance Regulations provide a specific framework for credit-only and deposit-taking microfinance institutions. The regulatory environment is mature but relies on older statutory instruments for core licensing.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Consumer lending | LicenceMoney Lender's Licence[1] Money Lenders Order 1989 applies; interest >25% presumed usurious. | — | — | CBL / Ministry of Justice |
| SME / commercial lending | LicenceMoney Lender's Licence[1] General lending falls under Money Lenders Order 1989. | — | — | CBL / Ministry of Justice |
| Microfinance | LicenceCredit-Only Micro-Finance Institution Licence[2] Specific framework under 2014 Regulations with defined capital. | LSL 1m | — | CBL |
| Buy-now-pay-later | Uncertainverify with regulator No specific BNPL regime identified; likely falls under Money Lenders Order. | — | — | — |
| P2P lending platform | Uncertainverify with regulator No specific P2P lending regulations identified in source documents. | — | — | — |
| Credit bureau / scoring | Uncertainverify with regulator No specific credit bureau regulations identified in source documents. | — | — | — |
| Debt collection | Uncertainverify with regulator Debt collection not explicitly regulated in provided documents. | — | — | — |
Market-entry checklist
- 1Apply for Money Lender's LicenceSubmit application to CBL/Ministry under Money Lenders Order 1989.
- 2Meet Microfinance Capital if ApplicableEnsure LSL 1m minimum capital if operating as a credit-only microfinance institution.
- 3Comply with Lending LimitsAdhere to CBL Financial Institutions Regulations regarding exposure limits.
- 4Manage Interest RatesBe aware that interest exceeding 25% p.a. is presumed usurious under 1989 Order.