The Egypt Financial Regulatory Authority has amended its consumer finance framework to increase the maximum amount of upfront cash financing for consumer purposes available to a single customer to EGP 50,000, up from EGP 10,000, following a creditworthiness assessment. The changes also add new conditions on repeat cash financing, data capture, and how funds and instalments are paid. The cap applies after a customer has been assigned a credit limit by a consumer finance company and is set at EGP 50,000 per customer regardless of differences in individual credit limits. Customers are barred from obtaining additional upfront cash financing until they provide documents proving the prior funds were used for the intended purpose and until the previous financing is fully repaid. Consumer finance companies must use digital applications that retain data and classify transactions, including details of the goods and services financed, sector classification, and cash disbursement data, alongside operational, monitoring and reporting requirements. Disbursement and instalment collection must use electronic payment methods, with cash permitted only within the thresholds set by Law No. 18 of 2019, meaning disbursements above EGP 2,000 and instalments above EGP 500 must be handled electronically; firms must also provide an appropriate and secure location for any cash-related transactions. Companies must obtain the authority’s prior approval before offering the upfront cash financing product and are required to apply for that approval within three months of the decision’s effective date, submitting evidence of alignment with the requirements in the 2023 decision and its amendments.
Egypt Financial Regulatory Authority 2025-06-30
Egypt Financial Regulatory Authority raises upfront cash consumer financing limit to EGP 50,000 and tightens approval, documentation and e-payment rules
The Egypt Financial Regulatory Authority revised its consumer finance framework, raising maximum upfront cash financing to EGP 50,000 from EGP 10,000, contingent on a creditworthiness assessment. New conditions include restrictions on repeat financing, mandatory digital data capture, and electronic payment methods for disbursements and instalments above specified thresholds. Consumer finance companies must secure prior approval from the authority to offer this product, ensuring compliance with updated requirements.