400,000 microcredit inquiries so far this year

CAIRO – 6 June 2017: The Egyptian Union of Microfinance executed 400,000 credit inquiries in the last five months, General Manager Hassan Ibrahim told Al Mal Tuesday. There were 92 inquiries in May alone.

The inquiries were requested by 420 civil associations providing microfinance, each of which signed a contract with the union to receive hard inquiries on applicant borrowers.

The union collaborates with I-Score, the Egyptian Credit Bureau, which provides credit inquiry services on loans starting from LE 1,500 ($83) following the orders of the Egyptian Financial Supervisory Authority (EFSA), which monitors non-banking financial markets.

The union comprises of 752 civil associations and institutions with a credit portfolio of LE 3.441 billion and 1,537 active borrowers.

The National Council for Payments decided in a meeting this week to exempt citizens from opening a bank account to use mobile payments for a year, and to reduce the service charge by 50 percent for six months, according to Al Mal newspaper.

Hassan said the step will increase the number of subscribers and facilitate payment of installment loans.

Three microfinance civil associations, Alexandria Business Association, Al Tadamun Microfinance Foundation and the Coptic Evangelical Organization for Social Services (CEOSS), launched a trial version for mobile payments earlier this year, in collaboration with the National Bank of Egypt and Central International Bank, to be generalized upon all associations in July.