الهيئة العامة للرقابة المالية

FRA raised the maximum limit for consumer pre-financing to 50,000 Egyptian pounds, subject to creditworthiness verification.

Clients are prohibited from obtaining new consumer cash financing until they demonstrate the proper utilization of previous funds and fully settle all outstanding installments.

Companies must utilize digital applications for data retention, specifically capturing details on financed goods and services, their sectoral classification and all cash disbursement operations.

The resolution mandates that all financing disbursements and installment collections be conducted exclusively via electronic payment methods.

FRA’s Board of Directors issued Resolution No. 138 of 2025, which amends previous legislation (Resolution No. 81 of 2023). This pivotal amendment raises the maximum limit for consumer pre-financing from EGP 10,000 to EGP 50,000 per client. This new ceiling applies to all financed operations, regardless of a customer’s individual credit limits set by consumer finance companies. FRA emphasized that this move is part of its commitment to provide diverse financing options that meet consumer needs, ultimately boosting financial and financing inclusion.

To ensure the stability of consumer finance companies and promote responsible borrowing, the resolution also introduces stricter conditions for subsequent financing. Customers are now prohibited from obtaining additional cash financing until they provide documentation proving the previous funds were used for their designated purpose and they have fully repaid the prior financing. This means customers must submit invoices or relevant documents for their previous cash-financed purchases and complete repayment before they can qualify for another cash finance.

The resolution further mandates the use of digital applications for robust data retention, aligning with the Authority’s strategy for comprehensive digital transformation in non-bank financial activities. Companies are required to classify all transactions, detailing financed goods and services, their sectoral classification and cash disbursement data. This includes adherence to operational and follow-up requirements, issuing necessary reports and utilizing information systems that cover all operational financing aspects.

The resolution introduces a key mandate: all financing disbursements and installment collections must now be conducted using non-cash (electronic) payment methods. This pivotal move aligns directly with Law No. 18 of 2019, which governs the use of non-cash payments in non-bank financial transactions.

The resolution also mandates that consumer finance companies shall prepare suitable and secure locations for all cash-related financial transactions with clients, particularly when delivering cash amounts. Companies must implement all necessary security measures for these operations.

 In addition, Law No. 18 of 2019 stipulates that the maximum for cash disbursements of financing is EGP 2,000 and the maximum for cash repayment of installments is EGP 500.

Building on this, the Authority now mandates that consumer finance companies must disburse cash financing electronically if the amount exceeds EGP 2,000. Similarly, they must collect installments for these financings electronically if the amount exceeds EGP 500.

Furthermore, consumer finance companies must now obtain prior approval from FRA before offering any cash financing products. This approval process includes a strict requirement to ensure clients use the financed amount for its designated purpose, supported by invoices or other verifying documents. Companies have a three-month grace period from the resolution’s effective date to apply for this approval and demonstrate compliance with Resolution No. 81 of 2023 and its regulatory amendments.

FRA consistently reaffirms its dedication to monitor market developments and refine the regulatory framework. This ongoing commitment ensures the framework adapts effectively to evolving market demands and economic challenges, ultimately protecting all stakeholders and fostering the growth of non-bank financial activities.