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Do I need an FCA licence?
Do I need an FCA licence?

Can I offer loans over 12 months? What about regulation?

Updated over 6 years ago

Instalment credit agreement is exempt from FCA authorisation if it meets all of the following criteria. If you wish to offer finance with different terms, please email us.

Must

  • be repayable by no more than 12 instalments within no more than 12 months

  • be a borrower-lender-supplier agreement (that’s to say, it must finance the acquisition of specific goods or services)

  • be for a fixed amount

Must not

  • be an agreement financing the buying of land

  • be a conditional sale or HP agreement

  • be a pawn agreement

  • contain charges or interest (for example, there can’t be an admin fee)

If you offer any additional financial services or arrangements that qualify as regulated activities, then you will need to be authorised by us.

It’s your responsibility to figure out whether your instalment credit agreement is exempt from our authorisation. If necessary, seek independent legal advice.

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