Consumer Credit Provider

Peer to Peer Lending Platforms provide consumer loans from the third party funds being intermediaries between the lender and consumer. Both offer fast and easy financing as an alternative to complicated bank financing. 

Fast and easy licensing, friendly regulation

The latest amendments to the Lithuanian Consumer Credit regulation allow fast and easy licensing of Consumer Credit Providers. It takes few months to be included in the Public List of Consumer Credit Providers or Peer to Peer (P2P) platform operators. Bank of Lithuania (the Regulator) currently considered as one of the most business-oriented and progressive regulators in all EU/EEA area.

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 Payment Institution, Electronic Money Institution or other passportable license.

List of documentation to be provided for Consumer Credit licensing

The company can be included into the Public List of Consumer Credit Providers provides submitting the following documentation:

  • Application for entering on a Public List of Consumer Credit Providers or P2P Platform Operators.
  • 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.

A 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 fulfillment in cases of unforeseen circumstances. Being the most experienced financial licensing advisor ECOVIS ProventusLaw assists in the preparation of the business continuity plan, other licensing documentation, accounting, reporting, audit, and setting up all consumer credit business.

Related information:

Peer-to-peer lending platforms

European Crowdfunding license

Other finance institution licensing solutions