Mauritius: lending & credit regulation

Who regulates

• Financial Services Commission (FSC)

  Licenses and supervises P2P lending platforms and money lenders; sets fees and operational rules for these non-bank activities.

  ^[1][2][3][4]

• Bank of Mauritius (BoM)

  Prudential supervisor for licensed banks and non-bank deposit-taking institutions; issues guidelines on credit risk, provisioning, macroprudential measures, and disclosure.

  ^{[5][6][7][8][9][10][11][12][13][14]}

Core laws & rules

• Financial Services (Peer to Peer Lending) Rules 2020 (2020)

  Establishes the regulatory framework for P2P lending operators, including licensing, capital thresholds, and limits on borrowing and lending for natural and legal persons.

  ^[4]

• Financial Services (Consolidated Licensing and Fees) (Amendment) Rules 2022 (2022)

  Introduces the Money Lending category (FS-1.20) and specifies associated licensing fees.

  ^[1]

• Banking Act 2004 (2004)

  Provides the statutory basis for the Bank of Mauritius's prudential oversight of banks and deposit-taking institutions, including credit risk management and corporate governance.

  ^[14]

Licensing & registration

• Peer-to-Peer Lending

  Requires a specific license under the FSC. Operators must meet capital thresholds and adhere to strict borrowing/lending limits. The framework was updated in 2021 to refine definitions of investors. Capital: Not specified in documents (only fees mentioned: Rs 30,000 application, Rs 60,000 annual) Timeline: Rules introduced 2020; amended 2021

  ^[4][2][3]

• Money Lending

  A distinct licensed category (FS-1.20) under the FSC. Requires payment of specified annual fees. Capital: Not specified in documents (only fees mentioned: Rs 43,000 or Rs 82,000) Timeline: Category introduced/updated in 2022

  ^[1]

• Banking/Deposit-Taking

  Licensed banks and non-bank deposit-taking institutions are subject to BoM prudential regulation. No specific lending license is mentioned separate from the banking/deposit-taking license. Capital: Not specified in documents Timeline: Ongoing under Banking Act 2004

  ^[5][12]

Restrictions & warnings

• BoM mandates a 50% debt-to-income ratio limit for residential property loans, capping variable income at 70%. Loan-to-value ratios are also mandated for real estate loans.

  ^[9][7]

• Credit concentration limits apply: maximum 25% exposure for single counterparties relative to Tier 1 capital. Cross-border exposures require robust risk mitigation.

  ^[11][6]

• P2P platforms must enforce strict borrowing and lending limits for both natural and legal persons. Insurers must follow prudent mortgage underwriting principles including DTI and LTV limits.

  ^[4][15]

• Licensed institutions must disclose credit facility information and statements of account to guarantors upon request.

  ^[8]

Direction of travel

• Regulatory focus remains on prudent risk management, with recent updates to P2P definitions and money lending fees. BoM continues to enforce macroprudential measures to mitigate systemic risks in the banking sector.

  ^[1][7]

Sources

1. Financial Services (Consolidated Licensing and Fees) (Amendment) Rules 2022 · 2022-01-01
2. Financial Services (Peer to Peer Lending) (Amendment) Rules 2021 · 2021-01-01
3. Financial Services (Consolidated Licensing and Fees) (Amendment No. 3) Rules 2020 · 2020-01-01
4. Financial Services (Peer to Peer Lending) Rules 2020 · 2020-01-01
5. Guideline on Classification, Provisioning and Write-off of Credit Exposures · 2024-08-20
6. Guideline on Cross-Border Exposure · 2022-08-22
7. Additional Macroprudential Measures for the Banking Sector · 2022-06-29
8. Guideline on Disclosure of Information to Guarantors · 2021-10-04
9. Guideline on the Computation of Debt-to-Income Ratio for Residential Property Loans · 2021-06-17
10. Transitional Arrangements for Regulatory Capital Treatment of IFRS 9 Provisions under Expected Credit Losses · 2021-01-13
11. Guideline on Credit Concentration Risk · 2019-08-22
12. Guideline on Credit Risk Management · 2017-08-18
13. Guidelines on Country Risk Management · 2010-04-27
14. Banking Act 2004 - Amendments to Guidelines · 2008-03-31
15. Guidelines for Mortgage Underwriting Practices and Procedures · 2021-05-13