Lending and borrowing between individuals in Mauritius
In Mauritius, lending between individuals happens either within the family through a written acknowledgement of debt or through a peer-to-peer lending platform licensed by the Financial Services Commission and bound by the Peer to Peer Lending Rules 2020.
A dedicated legal framework since 2020
In August 2020 the Financial Services Commission published the Financial Services (Peer to Peer Lending) Rules. Any platform that connects lenders and borrowers online in Mauritius must hold a P2P licence issued by the FSC before operating.
How much an individual can borrow via P2P
Under these rules, an individual borrower may seek between 50,000 and 1 million rupees through a licensed platform, and a company up to 3 million. These limits frame the activity and restrict the exposure of non-professional lenders.
Caps that apply to lenders
An individual lender may not commit more than 1.5 million rupees in total, and a corporate lender no more than 3 million. Exceptions exist for sophisticated investors who finance non-Mauritian borrowers in foreign currencies through these platforms.
Maximum repayment period of 84 months
A loan arranged through a Mauritian P2P platform cannot run for more than 84 months, or seven years. This limit brings such credit close to a bank personal loan and rules out long-term property financing through these platforms.
Checking the licence in the FSC register
Before depositing funds or uploading documents, search for the platform's exact name in the FSC register of licensees. A company missing from that register or named in the regulator's investor alerts should be avoided altogether.
Family loans and the written IOU
Between relatives, lending remains unrestricted, but a dated and signed document stating the amount, schedule and any interest prevents disputes. For a large sum, a notarial deed carries greater evidential weight before the Mauritian courts if things go wrong.
Informal neighbourhood moneylenders
In some districts of Port Louis and in villages, informal lenders advance money at very high rates without a clear contract. Borrowers in difficulty would do better to look first at microcredit and support schemes in Mauritius.
Risk for the individual lender
Money placed on a P2P platform is not a bank deposit: there is no Bank of Mauritius guarantee and the borrower may default. Spreading funds across several loans and reading the published default rate helps keep that risk under control.
What a licensed platform examines
A licensed platform checks the borrower's identity, income and credit behaviour, applying the FSC anti-money laundering rules. A profile turned down by a bank is therefore not automatically accepted on a P2P platform either.
Limited options without a steady income
A jobless person will struggle to convince a licensed P2P platform, which requires verifiable income. Public schemes, such as the transition allowance from the Workfare Programme Fund, are described on the loans for the unemployed in Mauritius page.
Tax on the interest you receive
Interest earned by an individual lender is income that must be declared to the Mauritius Revenue Authority. Keeping platform statements or receipts for repayments on a family loan makes the annual tax return much easier to complete.
A different picture in Madagascar
In Madagascar, lending between individuals remains largely informal and no P2P framework is as developed as the Mauritian rules adopted in August 2020. The peer-to-peer loans in Madagascar page describes local practices.
Borrowing through a Mauritian P2P platform
- Check the platform's P2P licence in the official register of the Financial Services Commission.
- Read the terms: platform fees, proposed rate, term, penalties and collection procedure.
- Open your account by providing your ID and proof of income and address.
- Present a clear project and an amount between 50,000 and 1 million rupees.
- Sign the electronic agreement and monitor the instalments debited from your bank account.
Costs and limits of P2P lending in Mauritius
| Parameter | Value | Source or note |
|---|---|---|
| Amount per individual borrower | 50,000 to 1,000,000 MUR | Peer to Peer Lending Rules 2020 |
| Cap for an individual lender | 1,500,000 MUR | Peer to Peer Lending Rules 2020 |
| Maximum term | 84 months | Peer to Peer Lending Rules 2020 |
| Interest rate | Indicative, set by profile | Platform's internal rating |
| Platform fees | Variable | Schedule published by each operator |
Documents required for a loan between individuals
- National identity card or passport
- Recent proof of address
- Payslips or MRA tax returns
- Bank statements
- Signed acknowledgement of debt for a family loan
- Bank details for the direct debits
Scams and mistakes around peer-to-peer loans in Mauritius
- Responding to a supposedly generous individual on Facebook who demands notary or insurance fees before releasing the loan.
- Entrusting your savings to a platform not listed in the FSC register or targeted by a public alert.
- Lending a large sum to a relative without anything in writing, then being unable to prove either the amount or the schedule.
- Putting all your savings on a single P2P borrower without spreading the default risk.
- Borrowing from a neighbourhood loan shark whose interest quickly overtakes the amount borrowed.
Lenders to contact
- MauBank: Mauritian commercial bank offering a range of loans for individuals as well as dedicated financing schemes for local small and medium enterprises.
- MCB (Mauritius Commercial Bank): Leading Mauritian commercial bank offering, among other products, a personal loan to help individuals finance their everyday projects.
- MCB (Mauritius Commercial Bank): Leading commercial bank in Mauritius offering personal loans and home loans, including an online application process for housing loans for residents.
Peer-to-peer lending in Mauritius: straight answers
Is P2P lending legal in Mauritius?
Yes, provided you go through a platform holding a Peer to Peer Lending licence issued by the Financial Services Commission. The 2020 rules set the amounts, the caps on lenders and a maximum term of 84 months.
Is the money I lend on a platform guaranteed?
No. Sums lent through a platform are not bank deposits and enjoy no public guarantee. If the borrower defaults, recovery depends on the platform's procedure and may only be partial, so lenders should invest accordingly.
Do I need a notary to lend money to a relative?
It is not compulsory: a signed document is often enough for a small sum. For a large amount or one secured on property, a notarial deed protects the lender better and makes any recovery action easier.
Can a foreign platform lend to Mauritians?
A platform carrying out P2P activity in Mauritius must in principle be licensed by the FSC. Using an unauthorised foreign website deprives the borrower of local protections and leaves them more exposed to fraud.