Pawnshop Activity and Consumer Credit in Lithuania

Classic pawnshop activity is the issuance of short-term loans secured by movable personal property (gold, electronics, jewellery, cars) with limited borrower liability. This activity does not require a special pawnshop licence.

Consumer credit is the professional issuance of loans to individuals (loans, instalments, credit lines). This requires inclusion in the Public List of Consumer Creditors maintained by the Bank of Lithuania. One company may legally combine both activities if each transaction is clearly separated and documented.

Why Lithuania

Why run a pawnshop and credit business in Lithuania?

No licensing

No licensing or supervision by the Bank of Lithuania for a classic pawnshop

Fast launch

Fast business launch

Working with gold

Possibility to work with gold and precious metals after a simple declaration with the LPR (Lietuvos prabavimo rūmai)

Flexible structuring

Clear separation of regimes allows flexible business structuring and minimises regulatory burden

Criteria

When is a pawnshop sufficient, and when is inclusion in the consumer credit list required?

A classic pawnshop is possible if all of the following conditions are met:

Collateral

Only movable property for personal use

Physical transfer

Physical transfer of the item to the pawnshop (possessory pledge)

Pledge ticket

A pledge ticket (įkeitimo bilietas) is issued

Limited liability

Borrower liability is limited only to the pledged item

Pawnshop

Pawnshop launch procedure

Company registration

Registering a UAB in the Register of Legal Entities

Tax registration

Registration with the tax inspectorate (VMI)

LPR declaration

If needed, declaring activity with precious metals at the LPR

Internal documents

Developing pledge, storage and sale rules

Launch

No application to the Bank of Lithuania required

Consumer credit

Procedure for inclusion in the consumer creditors list

Document package

Articles of association, creditworthiness assessment rules, fit & proper questionnaires for managers and shareholders

Paying the fee

Paying the state fee

Filing the application

Filing the application with the Bank of Lithuania

Review

Review within 30 business days

Inclusion in the list

Inclusion in the Public List and starting operations under BoL supervision

Support

Our support services

Choosing a model

Legal analysis and choice of the optimal business model (pawnshop / consumer credit / combination)

Company registration

Registering the company and preparing all internal policies

LPR declaration

Supporting the declaration with the LPR (for working with gold)

Documents for the BoL

Preparing and filing documents for inclusion in the Public List of Consumer Creditors

Agreements

Drafting pledge agreements, pledge tickets and credit agreements

Consultations

On separating the two activity regimes within one company

Compliance

Legal support and compliance assistance

Contact us

Ready to launch a pawnshop business or consumer credit issuance in Lithuania?

Our team experienced in regulated credit and pawnshop business will help you choose the right model and quickly launch operations in full compliance with the law. Let us handle the details so you can focus on growing your business in Lithuania!

Contact Us

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Pawnshop Activity and Consumer Credit in Lithuania