Botswana - Apply for Cash Loan or MicroLending Business License

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Procedure

Apply In Person

1. The application for Cash Loan or Micro Lending Business License shall be made to the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) office, Department of Microlending, which is in charge of the implementation of provisions of the Microlending Regulations such as licensing, off-site monitoring, on-site inspections, enforcements, and complaints handling. NBFIRA Contact & Map Location Details
2. Prospective applicants are required to collect the following forms, the Application for Cash Loan or Micro Lender Business License (Form 1), Personal Questionnaire and Security Vetting form ( SVI), obtainable at the NBFIRA receptionist desk, or download them via the NBFIRA website NBFIRA Micro Lending Forms or directly download them using these, Application for Cash Loan or Micro Lender Business License-Form 1Personal Questionnaire form This form must be filled by Directors, CEOs or Managers Security Vetting form (SVI)
3. The duly completed application form attached to the relevant supporting documentation as mentioned under the “Required Documents” section of this page, should be submitted to the NBFIRA offices. Any omission of the required documents or information will render the registration process incomplete.
4. Upon submission, the application is checked for completeness and correctness by the NBFIRA Department of Microlending receiving officer, if everything is in order the applicant is issued with an acknowledgment slip that proves submission of the application file and for inquiry referencing if the need arises.
5. Upon receipt of the application file, will evaluate the application and shall approve the applicant to be registered the microlender business, where it is satisfied that the applicant has met all the registration requirements.
6. The NBFIRA may request additional information relevant to the application. In such a case, the information must be submitted within a specific period from the date of notification. Where the applicant fails to submit the required information, the Authority shall reject the application.
7. Notice of the decision (Approval, Deferral, or Rejection) for the application will be communicated to the client in writing or by phone or email within 90 days of receiving the complete application and additional information requested.
8. Where the Authority is not satisfied that an applicant meets the registration requirements, it shall reject the application and notify the applicant in writing, stating the reasons for the rejection.
9. If approved, the Department of Microlending shall direct the NBFIRA registrar to register that business and draw up the cash loan/microlender business license to be issued to the client, upon presenting their identity document, approval letter, and acknowledgment receipt to be validated by the NBFIRA registrar's office.
10. An applicant whose application has been rejected may re-apply to the NBFIRA Department of Microlending office if the deficiencies that formed the basis for rejection of the application have been corrected or otherwise addressed.
11. The cash loan/microlender business license shall be display or exhibit in a conspicuous place on the authorized place where the business is conducted.

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Required Documents

• Articles of Association or any document by which the applicant is constituted (if applicable).
• Certificate of Incorporation and full corporate documentations from Registrar of Companies (Ministry of Trade and Industry) (if applicable).
• Copy of a document showing income tax registration number.
• A copy of any other registration or licensing certificate (if applicable).
• Copy of latest financial statements of the business (if already conducting lending business).
• Proof of payment of the Application Fee payable to the NBFIRA bank account.
• Certified copies of National ID/Passport for non-citizens.
• Copy of CV/Resume.
• Certified copies of academic and professional qualifications.
• Individual bank reference.
• Original copy of Police clearance.
• Anti-Money Laundering and counter financing of Terrorism (AML/CFT).
• Complaints Policy and Procedures Manual.
• Standard loans forms.
• Service level agreements (if any) - where the applicant seeks to use agents or other third parties to provide services. Provide copies of contracts.
• Two (2) passport size photos.
  
  

Office Locations & Contacts

Non-Bank Financial Institutions Regulatory Authority (NBFIRA)
Department of Microlending
Address: 3rd-floor Exponential Building, Plot 54351 New CBD, Off PG Matante Road,
Gaborone.
Botswana
Private Bag 00314, Gaborone
Tel: +267 3102595 / 3686100
Fax: +267 3102376 / 3102353
NBFIRA Website
NBFIRA Contact & Map Location Details

Business hours: Monday-Friday from 8:00 am-1:00 pm and 2:00 pm -5:00 pm, closed during Public Holidays & Weekends.

Eligibility

• Cash loan/micro-lending companies and businesses are eligible to apply.

Fees

• Non-refundable application fee of BWP6000 (six thousand pula) and should be deposited into NBFIRA bank Account No: 9060001296510 Stanbic Bank-Fairgrounds.
  
  

Validity

• The registration certificate is valid forever unless revoked, suspended, or canceled by the authority.

Documents to Use

Application for Cash Loan or Micro Lending Business License (Form 1)
Personal Questionnaire form This form must be filled by Directors, CEOs, or Managers.
Security Vetting form (SVI)

Sample Documents

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Processing Time

• Regulatory Authority shall within 90 days of receiving the complete application and additional information requested, issue the registration license to the applicant if approved.
  
  

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Instructions

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Required Information

• Names of the applicant
• Address of applicant
• Tax Registration number
• Contacts information to include office space
• Contact details of a principal officer (manager of principal office)
• Banking details
• Particulars of Controller(s)
• A business plan detailing 3-year financial projections if it’s a new application must be attached to the application
• Already established micro lenders must provide a copy of audited financial statements
• Disclose source of funding and security (no soliciting of funds from the public unless they buy a stake in the business as investors)
• Botswana Police Service Clearance
• Description of the business
• Declaration by the applicant

Need for the Document

• All entities/persons that wish to be involved in the micro-lending business (also called cash loan), which is an agreement between a borrower and the lending company for a financial loan are required to be registered and licensed by the Department of Microlending at NBFIRA.
  
  

Information which might help

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Other uses of the Document/Certificate

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External Links

Non-Bank Financial Institutions Regulatory Authority (Leasing Companies) Regulations, 2017
NBFIRA Micro Lenders

Others

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