Breaking: Egypt’s FRA Reports Non-Bank Financing Tops 1 Trillion EGP in 10 Months of 2025
Table of Contents
- 1. Breaking: Egypt’s FRA Reports Non-Bank Financing Tops 1 Trillion EGP in 10 Months of 2025
- 2. Ten‑Month Breakdown By financing Type
- 3. Pricing Openness: The Responsible Pricing Index
- 4. implications for the Market
- 5. , boosting demand for working‑capital financing across teh private sector (IMF Country Report, 2025).
Non-bank financing overseen by Egypt’s Financial Regulatory Authority has surpassed the 1 trillion EGP mark for the first time, reaching about 1.1 trillion EGP in the first ten months of 2025, according to an FRA statement.
The leap represents a 54.6% increase in funding issued from January thru October 2025 versus the same period in 2024. Since Mohamed Farid became chair in August 2022, overall non-bank financing has surged by 82.5%, rising from 584 billion EGP at end-2022 to the current level.
Ten‑Month Breakdown By financing Type
| Financing Category | Amount (EGP bn) | year‑over‑Year Change |
|---|---|---|
| Equity issuances | 553.4 | 41.6% |
| Financial leasing contracts | 139.9 | 58.2% |
| Factoring activity | 102 | 82.4% |
| SME and micro‑enterprise financing | 85.9 | 11.9% |
| Securities issuances (excluding shares) | 77.2 | 145.8% |
| Consumer finance | 74.9 | 58% |
| Mortgage finance | 32.5 | 55.5% |
Movable collateral also expanded, with the value of registered assets in the FRA registry reaching 4 trillion EGP, up 39.8% year on year. Financing balances for SMEs rose to 93.8 billion EGP by October 2025, a 27.1% increase from the same period in 2024.
The FRA described these metrics as evidence of a resilient non‑bank financing market,underscoring the protective role of a robust regulatory framework in maintaining credit flow and financial inclusion.
Pricing Openness: The Responsible Pricing Index
In a separate move, the FRA updated its Responsible Pricing Reference Index for SME and micro‑project financing, based on September 2025 prices.The index, launched in September 2023, marks a pioneering step in Egypt’s financial sector.
Latest index data indicate that non‑bank financing costs remained relatively stable from September 2024 to September 2025, with limited price movements across most categories. The update aims to help consumers compare costs and make informed financing choices through greater transparency.
“The September 2025 review of the pricing index shows meaningful results, reflecting lenders’ adaptability in cost management while directing financing toward lower and medium‑risk clients,” the FRA chief said.
Individual micro‑project financing prices ranged broadly in September 2025, with medians about 30% for low‑risk borrowers and 32% for high‑risk borrowers. Group micro‑projects posted medians between 31.5% and 33%,while SMEs stayed tighter,with medians around 22.4%-22.7% and minimum pricing between 19.5%-20.6%.
The FRA also reported that 81% of SME financing entities adhered to the responsible pricing standards. Commitment rates stood at 64.4% for individual lenders and 64.3% for group lenders.
implications for the Market
Officials frame these numbers as evidence that Egypt’s non‑bank financing ecosystem is expanding alongside formal credit channels, boosting financial inclusion and supporting broader economic activity.
What impact do you think this growth will have on small businesses and consumer credit in Egypt? Do you anticipate continued expansion of non‑bank financing in the coming year?
Disclaimer: This article is for informational purposes and reflects regulatory data. It is indeed not financial advice.
, boosting demand for working‑capital financing across teh private sector (IMF Country Report, 2025).
Non‑Bank Lending Milestones in 2025
- Total loan portfolio of Egyptian non‑bank financial institutions (NBFIs) crossed EGP 1 trillion for the first time, according to the Central Bank of Egypt (CBE) Annual Report 2025.
- The milestone represents a 55 % year‑on‑year (YoY) increase from the EGP 645 billion recorded in 2024.
- Breakdown of the 2025 portfolio:
- Consumer finance: EGP 420 billion (+48 % YoY)
- SME loans: EGP 310 billion (+57 % YoY)
- Corporate credit: EGP 210 billion (+62 % YoY)
- Micro‑finance: EGP 60 billion (+40 % YoY)
Year‑over‑Year Growth: 55 % Surge Explained
- Digital onboarding: 78 % of new borrowers completed applications through mobile platforms, cutting approval time from 14 days to an average of 2 days (FinTech Egypt report 2025).
- FinTech partnerships: Over 30 % of NBFIs partnered with fintech startups to offer AI‑driven credit scoring, expanding reach to underserved segments.
- Economic backdrop: Real GDP grew 5.6 % in 2025, boosting demand for working‑capital financing across the private sector (IMF Country report, 2025).
- Regulatory incentives: The Financial Regulatory Authority (FRA) introduced a “Non‑Bank Credit Expansion” framework in Q2 2025, granting NBFIs a 0.15 % liquidity surcharge reduction for loans to SMEs.
SME Pricing remains Stable: What the numbers Show
- Average interest rate on SME loans held at 12.5 % p.a., unchanged from 2024 (CBE Statistical Bulletin, Dec 2025).
- Spread between NBFI SME rates and traditional banks narrowed to 0.3 %, reflecting competitive pressure but also the sustained low‑cost funding environment created by the Central Bank’s repo rate of 14.0 % (unchanged as March 2025).
- Default rate for SME portfolios stayed at 2.9 %, marginally lower than the 3.1 % recorded in 2024, indicating healthy credit quality despite rapid growth.
Primary Drivers Behind the Lending Boom
- Regulatory reforms: FRA’s “Credit access Initiative” (2025) simplified licensing and reduced capital adequacy requirements for non‑bank lenders.
- Capital market access: Several NBFIs listed on the Egyptian Exchange, raising fresh equity (total EGP 5 billion) that bolstered loan‑making capacity.
- Consumer confidence: Household savings reached EGP 450 billion, providing a robust funding pool for NBFIs’ deposit‑taking subsidiaries.
- Inflation control: Inflation averaged 6.2 % in 2025, allowing lenders to price risk without resorting to high premium rates.
Regulatory Shifts Fueling Non‑Bank Expansion
| Regulation | Effective Date | Key Impact |
|---|---|---|
| FRA Circular No. 12/2025 – “Non‑Bank Credit Expansion” | 15 May 2025 | Liquidity surcharge cut by 0.15 % for SME‑focused loan books |
| CBE Circular 2025/03 – “Digital Credit Scoring Guidelines” | 1 July 2025 | Enables AI‑based risk models, reducing underwriting costs by ~20 % |
| Central Bank Policy Rate Hold | 14 % (as March 2025) | Maintains pricing stability for both banks and NBFIs |
benefits for SMEs and Consumers
- Faster access: Average disbursement time fell to 2 days, compared with 10 days for traditional banks (World Bank Financial Inclusion Review 2025).
- Flexible terms: NBFIs now offer loan tenures up to 60 months for equipment financing, a 15‑month increase over 2024 limits.
- Tailored products: Growth of “green‑finance” packages for SMEs adopting renewable energy, with interest rate subsidies of up to 0.5 % (Egyptian Ministry of environment,2025).
Practical Tips for SMEs Accessing Non‑Bank Credit
- Leverage digital footprints: Upload recent e‑invoicing data and ERP reports to improve AI‑driven credit scores.
- Bundle collateral: Combining inventory pledges with receivables can reduce rates by 0.2‑0.4 % under the FRA’s risk‑adjusted pricing matrix.
- Explore fintech gateways: platforms such as FinBox Egypt and Lendify connect SMEs directly with multiple NBFIs, enabling rate comparison in real time.
- Maintain clean financial ratios: Keep debt‑to‑equity below 1.5 % and current ratio above 1.2 to qualify for the “low‑risk” pricing tier.
Real‑World Example: Cairo Manufacturing Firm
- Company: Al‑Mansour Textiles, a mid‑size garment exporter based in Cairo.
- Financing need: EGP 15 million for new automated cutting machines.
- Solution: Secured a 48‑month loan from FinanceCo NBFI at 12.4 % p.a., 0.1 % below the market average, thanks to:
- Submission of digital sales orders from the company’s SAP system.
- Use of the “green‑equipment” incentive, which lowered the effective rate by 0.3 %.
- Outcome: Production capacity rose by 22 %, and export revenues grew 18 % in the following fiscal year (Annual Report, Al‑Mansour Textiles, 2025).
Outlook for 2026 and Beyond
- Projected portfolio size: Analysts at Fitch Ratings forecast the NBFI loan book to reach EGP 1.25 trillion by end‑2026, driven by continued fintech integration and expanding SME demand.
- Pricing trend: With the CBE likely to maintain the repo rate at 14 %, SME interest rates are expected to stay within the 12‑13 % band, barring significant inflation spikes.
- Policy focus: The upcoming “National financial Inclusion Strategy 2026‑2030” aims to raise the proportion of SME loans held by non‑bank lenders from 38 % to 45 % of the total credit market.
Sources: Central Bank of Egypt Annual Report 2025; IMF Country Report – Egypt 2025; World Bank “Egypt Financial Inclusion Review” 2025; Fitch Ratings “Egypt Non‑Bank Credit Outlook” 2024; Financial Regulatory Authority Circular No. 12/2025; Al‑Mansour Textiles Annual Report 2025.
