Institutions and activities
- Microfinance institutions may take the form of licensed associations or public limited companies.
- Their purpose covers micro-credit for economically disadvantaged persons, micro-insurance and other local financial services.
- They may only operate once licensed and are subject to supervision by Bank Al-Maghrib.
Protection of beneficiaries
- The contract specifies the amount, term, rate and total cost of the financing.
- Institutions must comply with rules on pricing transparency and complaint handling.
- Breaches are penalised by the supervisory authority.
Key articles
A lawyer's points to watch
- Compare the total cost of the financing, not just the advertised rate, before committing.
- Security required from a micro-borrower must remain proportionate to the amount financed.
- An unlicensed institution that grants interest-bearing loans is unlawfully carrying on a banking activity.
The English text on this page, including the quoted articles, is an unofficial translation. Information sheet prepared by Maître Lahfaia Law Firm, Rabat. It does not constitute legal advice. Only the text published in the Official Bulletin of the Kingdom of Morocco is authoritative; the articles cited may have been amended since this sheet was written.