Banks and financial companies participating in the Low-Income Home Loan Financing Initiative have injected loans worth EGP 75.62 billion to more than 594,380 customers by September 2024.
According to a Mortgage Finance Fund report, the 22 banks that participated in the initiative have poured approximately 73.11 billion Egyptian pounds into the initiative, reaching approximately 574,588 customers, representing 96.7% of the total initiative. It has become clear that it has been beneficial.
The mortgage finance company raised 2,511 million Egyptian pounds, benefiting approximately 19,792 customers, representing 3.3%.
The Central Bank of Egypt launched its mortgage financing initiative in February 2014. The initiative offers subsidized interest relief to low- and middle-income earners with interest rates ranging from 5% to 7%. The Mortgage Finance Fund provides housing units to low-income groups and determines the price of housing units according to construction costs.
In 2021, President Abdel Fattah Al-Sisi will direct the Central Bank of Egypt (CBE) to develop and launch a new mortgage financing program to support homeownership for low- and middle-income groups through long-term financing. I instructed him to do so. Low and simplified interest rates of up to 30 years and no more than 3%.
Initiative affiliation
In November 2022, Prime Minister Mostafa Madbouly issued a decision assigning the Ministry of Finance, instead of the Central Bank, the management and follow-up of all existing initiatives that provide below-market returns.
Initiatives covered by this decision included real estate financing initiatives for low- and moderate-income people, tourism support initiatives, vehicle replacement initiatives, and modern irrigation initiatives. This includes the decision-making process and the beneficiaries, costs, duration, who will assume executive control of each initiative, the sources of funding for the initiative, and who will bear the costs. The decision allocates 100 billion Egyptian pounds at 3% interest for real estate financing initiatives for low- and middle-income earners, with the Ministry of Housing, Utilities and Urban Communities covering the cost of compensating banks for the difference. is stipulated. In return rate.
NBE leads the initiative
The National Bank of Egypt (NBE) led the banks participating in the low-income real estate financing initiative, according to a report by the Mortgage Finance Fund. The loan amount to 153,169 customers amounted to EGP 18,971 million, accounting for 25.1% of the initiative.
In second place was Banque Misr, with a loan amount of 17,831 million Egyptian pounds and a loan rate of 23.6% for 138,888 customers. Housing Development Bank (HDB) took third place with a loan amount of 7,567 million Egyptian pounds, 74,763 customers and a share of 10%. In fourth place was Banque du Caire, with a loan rate of 9.3%, amounting to EGP 6.995 billion for approximately 53,835 customers. In fifth place was QNB Bank, with a share of 6.3% and a loan amount of 4.762 billion Egyptian pounds to 28,787 customers. In sixth place was Commercial International Bank (CIB), with 27,400 customers, a loan amount of 4,021 million Egyptian pounds, and a loan-to-value ratio of 5.3%. In seventh place was United Bank, with a share of 2.6%, which provided loans of EGP 1.994 billion to 14,502 customers. Industrial Development Bank (IDB) came in 8th place with a share of 2.6% and 1.982 billion Egyptian pounds to 17,704 customers, followed by Arab Investment Bank with a share of 1.7% and 1.323 billion Egyptian pounds to 8,584 customers. A loan of pounds sterling was given. Arab African International Bank has a 1.7% share and has lent 1.298 billion Egyptian pounds to 10,677 customers.
mortgage finance company
The fund has made Al Ta’amir Mortgage Finance the top company participating in the low-income real estate financing initiative as of September 2024, with a total of EGP 991,932,000 for 7,429 customers. It revealed that it has a portfolio of 1.3% of the total initiative.
According to the fund, Contact Mortgage ranks second among companies participating in the initiative with a portfolio of EGP 838.7 million across 6,167 customers and a market share of 1.1%. Ta.
In third place is Al-Ahly Mortgage Finance, with a portfolio of 2,536 customers and 284,436,000 Egyptian pounds, and a share of 0.4%, and Amlak Mortgage Finance, with a portfolio of 2,320 customers, 252,133,000 Egyptian pounds, and a 0.3% share. It continued.
In fifth place was Tamweel Mortgage Finance, with a loan amount of 68.6 million Egyptian pounds to around 602 customers, with a market share of 0.1%. Egyptian mortgage companies came next with 43.042 million Egyptian pounds to 429 customers, with a share of 0.1%. Al Ahli United was next, delivering value of EGP 19.97 million to around 200 clients. Finally, Arab African International Mortgage Finance came in last place, offering a value of 12.2 million Egyptian pounds to around 109 customers.
