Suppose a credit provider offers credit with a maximum repayment period of three months. Does this credit provider have to apply for a licence?

In principle, this credit provider does have to apply for a licence. Based on Section 1:9 of the Financial Markets (BES Islands) Decree (Bfm financiële markten BES, “Bfm BES”), though, a provider of credit is exempt from the licence requirement if the credit period is less than three months and the consumer is charged only negligible costs. 

The three-month limit is applied strictly, in the sense that the credit must definitely be repaid after three months. What is decisive here is the actual situation. For example, if the credit is replaced or succeeded by another credit after three months, the AFM considers this construction in principle as credit for a period of more than three months.

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