Finclub Loan Demand Hits Rs 2 Billion As Alternative Finance Sector Grows Rapidly

Demand for alternative financing in Mauritius has reached a historic milestone, with FinClub recording over Rs 2 billion in cumulative loan requests by the end of December 2025.

The surge highlights a critical shift in the local financial landscape as Small and Medium Enterprises (SMEs), facing persistent cash flow pressures and limited access to traditional banking, increasingly turn to peer-to-peer lending platforms.

Institutional Backing Secures Growth

In a significant move to bolster the sector, the Industrial Finance Corporation of Mauritius (Equity) Ltd (formerly SME Equity Fund Ltd) has joined FinClub as an institutional investor.

Under this new partnership, the public body is authorised to invest up to 10% in individual SME loans, capped at Rs 200,000 per transaction.

Sanjay Mungur, CEO and founder of FinClub, noted that the entry of a state-backed investor validates the platform’s transparency.

“This partnership marks an important milestone,” Mungur said. “It shows that when processes are serious and transparent, institutional actors can work with private platforms to support the real economy in a concrete and responsible way.”

Expanded Lending Limits

To accommodate the growing needs of established businesses, FinClub has implemented several strategic updates to its product offerings:

• Increased Loan Ceiling: The maximum loan limit for SMEs has doubled, rising from Rs 2.5 million to Rs 5 million.
• Extended Repayment Terms: Both personal and SME loan durations have been extended to 60 months.
• Growing Investor Base: The platform now hosts 13 active institutional lenders, who view SME debt as a means of diversification with high social impact.

New Liquidity Features

Looking ahead, the platform is set to launch a Secondary Market. This regulated framework will allow lenders to sell all or part of their existing loan participations.

According to Mungur, this move is designed to provide greater flexibility and liquidity, further enhancing the attractiveness of SME financing for local investors.

By placing SMEs at the heart of its strategy, FinClub aims to solidify its position as a pivotal player in the Mauritian alternative finance market, providing solutions tailored to the practical realities of the local entrepreneurial fabric.

Source: Defi Media