Over the past couple of years business of Money lending has blossomed as many people are going into the business given that the market is huge. People who were engaged in the business and were considered to be loan sharks have now rebranded themselves and gotten on the right side of the law by getting their license and providing loans at reasonable rates.
As I mention in my earlier publication titled, “Frequently asked questions about every state in Nigeria’, every state in Nigeria has their own Money lenders law and procedure for obtaining Money Lending license, since there is no national license, individuals or corporate who wish to engage in Money Lending business nationally need to acquire the license of the state where they plan to operate.
This article focuses on how to obtain a lenders license in Oyo state
OBTAINING A MONEY LENDERS LICENSE IN OYO STATE
Located in the South-West geopolitical zone of Nigeria and blessed with vast and fertile farmland. Oyo is positioning itself as a food production centre in Nigeria.
The process of obtaining a lenders license in Oyo State is quite different from other states as can be seen below:
STEP BY STEP PROCEDURES OF ACQUIRING THE MONEY LENDERS LICENSE CERTIFICATE
STEP ONE- Deciding on the Capacity in which you want to apply.
Before you embark on the journey of acquiring a lenders license, you have to firstly decide on what capacity you want to apply, either as a business name or Limited Liability Company. Once that decision is made the applicant, will proceed to register the legal entity making sure that they object of business indicated that you plan to engage in money lending business.
If the applicant has an already existing business, he/she should ensure that the business is TAX compliant and has a tax clearance certificate. Also, the two directors who will be representing the company must have proof of tax payment in
STEP TWO- Application to the Ministry of Trade, Investment and Co-operatives, Oyo State
The second step is to lodge an application address to the Ministry of Trade Investment and Co-operative Secretariat, Ibadan Oyo State. When submitting the application letter, the following documents must be provided;
1. A cover letter (i.e. an application Letter for Moneylenders license addressed to the Honourable Commissioner, on a Letterhead paper with the company seal affix to the letter.
2. Photocopy of the company’s certificate of incorporation with the memorandum.
3. Last 3 years Tax clearance from Revenue House, Oyo State
4. Evidence of payment of N100,000 for Registration with the Federal Government
5. Money lenders license certificate from another state may be attached (if available).
6. Provide a local address where the business is operating from.
STAGE THREE: ISSUANCE OF LICENSE
On submission of the above mentioned requirements, the money lending certificate and tax clearance(if you also applied for one) will be ready for collection in 2-3 weeks