RENEWAL OF MONEY LENDERS LICENSE

A Money Lending License in Nigeria can be granted to an individual or a corporate body. However, obtaining the moneylender license through a corporate body is more advisable, therefore that will be the focus of this article.

The Money Lending Law of the various states in Nigeria regulates money lending business operations. The step for how to get a money lenders license in Lagos State commences by making a prescribed application to the Chief Magistrate.

For a company to become a legitimate moneylender, it must obtain the Money Lending License. One of the benefits of being a licensed moneylender is that a moneylender can exercise its right in instituting an action in court to recover the principal loan and accrued interest from a defaulting borrower.

Requirements for an application of Money Lending License in Lagos.

1. Application for renewal
2. Incorporation documents.
3. Tax Clearance Certificate.
4. Three-year tax clearance certificate.
5. Police Clearance.
6. Bank reference.
7. Visitation and Inspection.

PROCEDURE FOR APPLYING FOR A MONEY LENDING LICENSE

1. An application should be made in the prescribed form to the Chief Magistrate within the magisterial jurisdiction where the business will be carried. With supporting documents.
2. Chief Magistrate, issues letter and appropriate forms.
3. Formal application to the Ministry of Home Affairs and Tourism.
4. Payment of the official fee.
5. Payment for application form with receipt.

VISITATION AND INSPECTION OF PREMISES

The final stage includes the visitation and physical inspection of the intended office by government officials. Upon visitation, if the company in question is already operating in the money lending activities, the books will be inspected in addition to the office.

If the company complies with the statutory requirements and upon the government official’s satisfaction, the applicant will be issued with the Money Lending License.

RENEWAL OF MONEY LENDERS LICENSE

Money lending License issued by states has a one-year duration. The license must be renewed annually.

1. Application for renewal
2. Moneylenders’ ordinance (form B) from Magistrate Court
3. Duly completed and endorse (form C) from Chief Magistrate Court
4. The previous licensed issued
5. Updated tax clearance
6. Evidence of payment of renewal fee.
7. Re-visitation and inspection.

CONCLUSION

In conclusion, it is important for any individual that intends to carry on money lending services to obtain a license from the Ministry of Home Affairs and Tourism so as to legitimize the business and also be entitled to an absolute legal remedy.

Finally, a startup company seeking to engage in money lending business through mobile technology must also obtain a money license from each and every state the company intends to carry out its business. And due to several requirements and steps involved in obtaining a money lending license, it is desirable to engage an expert, especially lawyers to undertake the process.