Egypt Financial Regulatory Authority mandates immediate reporting of approved credit limits to the Egyptian credit information company and bans charges on unused limits

The Egypt Financial Regulatory Authority issued a circular requiring non-bank finance companies to immediately report to the Egyptian credit information company the credit limits they approve for customers, even where those limits are not used, and to avoid charging any interest, price, or cost on unused credit limits. The circular shifts reporting from end-of-month submission to immediate notification, aiming to keep customers’ credit data updated and support periodic verification of creditworthiness to ensure sound financing decisions. Firms must report the credit limit granted to each customer upon approval and with each use, as well as when the limit remains unused, based on the customer’s credit assessment and repayment capacity. It also specifies that fees should be calculated only on the utilised portion of the financing, and was developed following a series of meetings with consumer finance companies and service providers.