On 11 May 2018, MinLaw issued an invitation for proposals to pilot new business models for moneylending. Applications closed on 20 July 2018. These six firms were selected for having the strongest proposals amongst the 38 firms which applied. They also met a set of stringent mandatory criteria, including the soundness and completeness of the business model, participation in debt assistance schemes, professional debt recovery practices, customer and communication strategies, and effective cost of credit and credit policies. For the instant, they have paid-up capital of at least $1 million, which shows their financial standing. They also have a demonstrating track record in providing consumer credit, whether in licensed moneylending or in other sectors of consumer credit.
The six firms and the number of moneylending outlets each of them can apply to operate are:
a. Credit 21 Private Limited (4 outlets);
b. Dey Private Limited (4 outlets);
c. IFS Capital Limited (1 outlet);
d. Minterest Holdings Private Limited (1 outlet);
e. Quick Credit Private Limited (4 outlets); and
f. Xingang Investment Private Limited (1 outlet).
The six firms will issue moneylending licenses to operate the outlets they apply for. In a one-time lifting of the moratorium imposing on the issuance of new licenses. Since moratorium is imposing in 2012, the number of moneylending outlets is decreasing from 215 outlets to 162 outlets currently. The six firms will allow applying for licenses for up to 15 new outlets in total, and this represents less than 10% of the 162 outlets currently operated by the 157 licensed moneylenders.
The licensees will allow operating for up to two years beginning in 2019, following which MinLaw will evaluate the results of the pilot and consider options for refining the moneylending regulatory regime.