Canada    FinTech Guide    Chapter 7    Luxembourg

7. Loan Services / Factoring / Loan Broking / Finetrading
Luxembourg  Luxembourg

The social and political climate regarding FinTechs in the business area of Loan Services, Factoring, Loan Broking and Finetrading is still in the process of development.

Legal Affairs

An approval is required by the Ministry of Finance to be used.

According to the 5 April 1993 Law, no legal person governed by Luxembourg law may carry on the business of a credit institution without a written authorization from the Minister with responsibility for the CSSF Commission de Surveillance du Secteur Financier – Financial Sector Supervisory Commission).

Requirement of a Credit Institution:

Minimum capital requirement: EUR 8,700,000
Costs for getting a license: EUR 15,000 to be paid to the CSSF
Annual license: from EUR 85,000 to EUR 350,000 to be paid to the CSSF, based on the total assets of the credit institution.

There are other financial Luxembourg players offering lending with or without a legal authorization as e-money institutions (binding authorization from Minister with responsibility of the CSSF), consumer credit companies or Fintechs (without authorization).

Economic Conditions

Not significant.


No key player based in Luxembourg to the best of our knowledge. The FinTechs active in the lending (consumer credit with limited amounts) are Mash, MyBucks, C Finance, Crosslend and Numen Europe.

Contributing Authors

Felten & Associes

Bernard Felten

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Chapter Index:

1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 August 2019