الهيئة العامة للرقابة المالية

• • FRA representatives
  • Central Bank of Egypt representative
  • Ministry of Social Solidarity representative
  • Micro, Small and Medium Enterprises Development Agency (MSMEDA) representative
  • Two leaders from NGOs and associations
  • One expert specializing in finance or civil work

Microfinance Associations and NGOs – Category (A)

whose financing portfolios exceed 50 million pounds

Microfinance Associations and NGOs – Category (B)

whose financing portfolios between  10 million pounds and 50 million pounds

Microfinance Associations and NGOs – Category (C)

whose financing portfolios are less than 10 million pounds

Different financial channels available to people who need loans to cover personal expenses, not for commercial or professional activities

They are individuals who borrow money for personal needs, not business-related expenses, according to Law No. 18 of 2020 on consumer finance.

Producers or distributors of goods engaged in consumer finance activity – once the amount of funding granted exceeds EGP 25 million.

It  is a type of finance in which a business would sell its accounts receivable (invoices) to a third party to meet its short-term liquidity needs. Under the transaction between both parties, the factor would pay the amount due on the invoices minus its commission or fees.

• Vehicles (cars, motorcycles, spare parts)
• Home furniture and furnishings
• Clothing, shoes, watches, jewelry, and eyewear
• Beauty products and toiletries
• Electronics, gadgets, and sportswear
• Appliances and other durable household goods
• Combined purchases from multiple stores or chains (single invoice financing)
• Children’s items like toys, books, stationery, and food

• Consumer finance excludes real estate, financial leasing, factoring , microfinance and purchase property from a real estate developers

• Clients have the right to know exactly what they’ll be charged, including interest rates and any fees, before they agree to a loan or financial product
• Finance Companies shall avoid charging customers more due to internal inefficiencies or errors.  Companies need to find a way to offer fair prices while reaching larger number of clients.
• Finance Companies should only offer loans that customers can realistically repay
• Finance Companies must prioritize treating clients with fairness and respect
• Finance Companies should create opportunities for customers to share their thoughts on offered products and services . Additionally, a clear and accessible complaint process should be available to address any issues efficiently.
• Finance Companies shall keep client’s personal information confidential and never share them without client’s explicit permission.
• Clients have the right to receive a clear and easy-to-understand copy of their financing agreement

Every project with an annual business volume of 50 million EGP and not exceeding 200 million EGP, or every newly established industrial project which has paid-up capital or invested capital according to conditions of 50 million EGP and does not exceed 15 million EGP, or every newly non-industrial project incorporation paid-up capital or the invested capital of which, according to the circumstances, is 3 million EGP and does not exceed 5 million EGP.

Each project which has an annual business volume of less than one million EGP or every newly established project whose paid-up capital or invested capital is less than 50 thousand EGP.

• Licensed NGOs and Civil Associations

• Financial Institutions: This category includes Egyptian joint-stock companies that are licensed by FRA to provide MSMEs financing in accordance with the regulations outlined in Law No. 141 of 2014 and its amendments.

• Associations and NGOs can also participate in MSME financing, but they must operate under Law No. 84 of 2002, as amended by Law No. 149 of 2019 on regulating civil work. These associations must be licensed to practice the activity in accordance with Law No. 141 of 2014 and its amendments

Law No. 141 of 2014 was promulgated and amended by Law No. 201 of 2020 to regulate MSME Finance  in the non-banking financial sector

This refers to a business that is in its early stages of development . A business that is launched , registered and engaged in the activity within two years

• Create a well-regulated environment for MSME Finance through focusing on three key objectives: Protecting All Parties Involved, Promoting Transparency and Efficiency, Mitigating Risks.
• Elevate professionalism within MSME Finance. This involves establishing high standards that align with international best practices
• Create a more vibrant and competitive MSME finance market, which can ultimately benefit small businesses by offering them more financing options.
• Bridge the gap between the financial needs of MSMEs and the available financing options through promoting a wider variety of financial products and services.
• Emphasizes fair and responsible lending practices to protect borrowers through focusing on Transparent Pricing and Conditions, Responsible Lending and Proper Use of Funds

An independent oversight body specifically dedicated to micro, small, and medium enterprise (MSME) financing. This unit, established by FRA, operates autonomously to supervise the activities of private associations and institutions that provide financing to MSMEs. A Board of Trustees composed of representatives from relevant government ministries and organizations governs the Unit.

The following outlines the regulations set forth by the Financial Regulatory Authority (FRA) for NGOs and associations engaging in MSMEs financing , including advertising regulations for MSME financing services.

To comply with regulations, MSME financing providers must ensure all information advertised is comprehensive. This includes information delivered through audio, visual media, written materials, electronic communications, or any other means.

The regulations also establish guidelines for managing customer inquiries and credit checks.

MSME financing providers shall take into account “concept of solidarity groups” when making funding decisions and applying approved policies.

Upholding data privacy is another key principle for MSME financing providers. They are legally obligated to comply with all applicable laws and regulations regarding customer data privacy.

Each project has an annual business volume of one million EGP and less than 50 million EGP, or every newly established industrial project with paid-up capital or invested capital between 50,000 EGP and less than 5 million EGP, Or every newly established non-industrial project with paid-up capital or invested capital, between 50 thousand EGP and less than 3 million EGP.

• Avoid companies not licensed by the Authority for this activity. For a list of licensed companies , visit the Authority’s website or call their customer service line
• Make sure you fully understand everything about the  provided product or service, including terms and conditions, payment options, rescheduling conditions , privacy and confidentiality , all costs related to the product or service e.g.  interest rate /cost of funds , application fees, release  fee, other administrative costs
• Provide only credible and verifiable data to maintain trust
• Take your time to read every term of the contract thoroughly. Make sure you fully grasp what’s being agreed upon and that there is no room for misinterpretations. Most importantly, be confident you can meet all the requirements before committing
• Clients have the right to get clarifications on any item or term in the contract or any other document provided by the company. Finance company is there to answer your questions and ensure you understand the terms fully before signing
• Ask for a copy of the contract and any other documents you sign before finalizing anything.
• All parties involved in the contract are legally bound to fulfill their agreed-upon responsibilities
• Do not sign blank pages or security receipts for financing
• Avoid signing any forms that allow the company to freely use your personal and financial data
• Ask about any potential fees you might incur by opening an account or using their services.
• Don’t forget to ask for a receipt whenever you make a payment to the financial institution
• Check if the product or service matches the features and details you agreed upon in the contract
• You have to use the product or service following the guidelines laid out in the contract with the financial institution
• Follow the payment schedule outlined for your premiums to avoid any late fees
• As soon as your service period ends or you make an early payment, make sure to get your documents and guarantees from the company right away
• Make sure the person you’re dealing with is a legitimate employee of the financial institution before disclosing any personal or account information
• For any disputes with the company, utilize the designated channels for addressing concerns and finding a solution.
• Start by trying to resolve the issue directly with the company’s Complaints Department. If you’re unhappy with their response, you can then escalate your complaint to the Authority’s Complaints Department for further assistance

• Clients are not allowed to deal with non-licensed companies. A list of licensed companies is available on the Authority’s website or by contacting customer service
• Before taking a decision, it’s crucial to thoroughly understand all aspects of the product or service. This includes details like terms and conditions, payment options, rescheduling terms, data privacy, related costs e.g. interest rates, finance charges, application fees, release fees , and any other administrative expenses the company or financial institution may charge
• Verify that all necessary information is complete and trustworthy.
• Take time to thoroughly review all the contract terms. Make sure you fully grasp the meaning of each provision and that terms of the contract are unambiguous and you have the ability to comply with it
• Clients have the right to ask any questions if aspect of the financing agreement or associated documents seems unclear. The company shall provide clear responses in this respect
• Clients have the right to receive a copy of any contract or document  they sign
• All parties to the contract shall abide by the agreed-upon terms.
• Beware of signing blank documents or security receipts – they may not guarantee funding.
• Don’t sign anything that gives the company or financial institution  the right to share your personal or financial information without your permission
• Ensure you are fully informed of all costs associated with dealing with a financial institution
• Upon settlement of any financial obligation to the institution, ensure you receive a formal receipt.
• Clients have the right to receive a product or service that meets the agreed-upon specifications as outlined in the contract
• Use the product or service according to the rules outlined in your contract with the financial institution.
• Pay your premiums on time as per the agreed-upon schedule
• Once your service ends or you make a full payment (whichever comes first), get your documents and guarantees back from the company right away.
• Make sure the person you’re dealing with is a legitimate employee of the financial institution before disclosing any personal or account information
• For any disputes with the company, utilize the designated channels for addressing concerns and finding a solution.
• Start by trying to resolve the issue directly with the company’s Complaints Department. If you’re unhappy with their response, you can then escalate your complaint to the Authority’s Complaints Department for further assistance

• Companies shall clearly explain all transaction costs to clients before they proceed.
• Companies shall provide receipts to the clients that indicate reimbursement for the costs associated with the transaction.

• Companies shall set up a system to address clients’ complaints, keeping track of what actions were taken. 

• Clearly explain to the clients complaints’ process and display it prominently at company’s headquarters and branches

• Companies shall provide a written and approved guide that explains the rules and steps set for performing their licensed activity and this guide shall be regularly updated.
• Executive Regulations governing the activity must be comprehensive and encompass all mandatory items as outlined in the relevant legislations and decisions.
• The institution shall establish its own internal rules for how the activity will be conducted and these rules shall be always  updated

• Companies shall abide by FRA’s Board decisions Clarifying the needed guarantees from clients
• Safely storing and keeping client’s guarantees to prevent loss or misuse.
• The company shall return all submitted guarantees to the client or guarantor immediately after the contract ends or the client’s balance is paid, whichever comes first

• Licensed non-bank financial institutions shall adhere to all regulations set forth by the Authority governing their licensed activities
• Non-bank financial institutions shall comply with office correspondence forms and contracts issued by the Authority pursuant to the governing Laws and  FRA’s Board decisions
• Non-bank Financial institutions shall regularly review and update their document forms in light of the rules and  regulation governing their activities
•  Non-bank Financial institutions shall regularly review and update their internal regulations pursuant to the  Laws governing their activities

• Contract terms should comply with the Authority’s guidelines, where provided.
• Contract terms should be clear and free from any potential misinterpretations.
• Companies shall provide their clients with a copy of their contracts or a complete breakdown of the service’s terms.
• Companies shall abide by the terms and service costs established in contracts. No unilateral changes shall be made.
• Clients are entitled to a payment plan for their remaining installments, ensuring compliance with all legal collection timelines.

• Activating Know Your Customer (KYC) procedures and enforcing all necessary measures to prevent money laundering and terrorist financing.
• Fulfilling all mandatory information on the application forms
• Verifying that the client  isn’t on any sanctions or terrorist entity lists
• Verifying and identifying  the Ultimate Beneficial Owners (UBOs)
• Verifying the intended purpose of the funds and confirming it’s alignment with approved and licensed activities.

Companies licensed to offer consumer finance, which includes extending credit via commercial payment cards or any other payment method approved by the CBE, in connection with a contractual arrangement with a network of suppliers of goods or providers of services. By contrast, “Consumer Finance Providers” are companies that are themselves producers or distributors of goods or services and which perform consumer finance activities to facilitate providing such supplies to consumers.

The maximum amount of financing a micro-finance project can get is EGP 200,000 per project

FRA’s Board of Directors can raise this limit by up to 10% each year, depending on the economic conditions .

However, there is generally no pre-set maximum loan amount for SMEs. The financing offered is based on the specific needs of the project and a thorough assessment of the business’s creditworthiness.

Refers to providing finance to purchase goods or services, clients can’t afford. These loans are repaid over a set period, usually at least six month. This includes financing options like credit cards and other Central Bank-approved payment methods.

MSMEs Finance refers to providing financial resources to MSMEs for commercial activities. This includes production, operations, and growth initiatives, as outlined in Law No. 152 of 2020 promulgating MSMEs Development Law.

 MSMEs Finance is a main tool to attract more people from low-income backgrounds and those without a lot of financial resources involved in the economy.

 When micro and small business owners have access to loans and other financial tools, it creates a ripple effect. It helps reduce unemployment, boosts low-income families, and overall, leads to more investment and job opportunities within the national economy.

FRA is responsible for regulating consumer finance activities, as outlined in Consumer Finance Regulation Act No. 18 of 2020.