Egypt Raises Consumer Pre-Financing Limit to EGP 50,000 Under New FRA Resolution

CAIRO - Sept. 20, 2025 - PRLog -- Egypt's Financial Regulatory Authority (FRA) has issued Resolution No. 138 of 2025, significantly increasing the maximum consumer pre-financing limit from EGP 10,000 to EGP 50,000 per client. The resolution introduces new safeguards to ensure responsible lending and greater accountability within the consumer finance sector.

Under the updated framework, licensed finance companies must now verify the intended use of pre-financed amounts, ensure repayment of any outstanding facilities, and implement stricter digital transaction monitoring. The decision reflects the FRA's efforts to expand financial inclusion while maintaining market discipline and protecting consumers from excessive debt.

"This measure is designed to give Egyptian households greater access to consumer finance products, particularly at a time when inflation and purchasing power pressures require more flexible solutions, At the same time, it places a heavier compliance burden on finance companies, which must carefully review credit assessments, contract structures, and dispute resolution mechanisms."

The new ceiling is expected to reshape the consumer credit market by enabling higher-value purchases through financing, while prompting financial institutions to strengthen their risk management and recovery procedures. Legal analysts believe the resolution could lead to a rise in both consumer finance opportunities and debt recovery cases over the coming years.

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