Consumer finance companies provides LE 43.32B for purchases in installments: FRA

CAIRO – 29 January 2024: Consumer finance companies secured a total of LE 43.32 billion to customers from January to November 2023, marking an increase of 61.4 percent compared to LE 26.84 billion during the same period in 2022, according to the Financial Regulatory Authority (FRA).

By the end of November 2023, the number of consumer finance clients also witnessed a growth of 22.8 percent, to reach 3.128 million beneficiaries, compared to 2.546 million clients at the end of November 2022.

In terms of financing distribution, cars and vehicles accounted for the majority of installments, constituting approximately 36.99 percent of the total amount during the first 11 months of 2023.

Following closely behind was the purchase of electrical appliances and electronics, representing around 30.95 percent of the financing, finishing and home furnishings accounted for about 5.61 percent, while purchases made through a single invoice accounted for 5.03 percent.

In November 2023 alone, the total value of consumer financing amounted to LE 5.357 billion, an increase of 69 percent, compared to LE 3.17 billion in November 2022.

Additionally, the number of customers increased by 7.5 percent in November 2023, reaching 314.3 thousand customers compared to 292.3 thousand in November 2022.

Consumer finance enables individuals to purchase goods or services without paying the full amount upfront. Instead, they agree to make installment payments for at least 6 months.