The CBE launched a mortgage finance initiative in February 2014 with subsidized decreasing interest ranging from 5% to 7% for the low- and middle-income segments.
The Social Housing and Mortgage Finance Fund (MFF) has reported that the contribution of the 22 banks that participated in the mortgage finance initiative for low-income housing reached about EGP 54.3bn in February, benefiting about 474,200 customers.
The CBE launched a mortgage finance initiative in February 2014 with subsidized decreasing interest ranging from 5% to 7% for the low- and middle-income segments.
In 2021, President Abdel Fattah Al-Sisi instructed the CBE to formulate and launch a new mortgage financing programme for low- and middle-income groups with long-term loans of up to 30 years and with low and simplified interest that does not exceed 3%.
The initiative includes several conditions, most notably providing the necessary real estate financing to customers who meet the conditions of the initiative through banks or real estate finance companies at a return rate of 3% calculated on a decreasing basis for a maximum period of 30 years.
According to the fund, the National Bank of Egypt’s (NBE) contributions, within the initiative, recorded EGP 15.464bn for 133,864 customers, accounting for 27.3% of the total bank financing. Banque Misr came second with EGP 13.256bn for 111,153 customers, accounting for 23.4%. HDB came with EGP 6.652bn for 70,152 thousand customers, accounting for 11.7%.
In fourth place came Banque du Caire with a share of 6.1% with a value of EGP 3.430bn for 35,958 customers, then CIB with a share of 5.5% and a value of EGP 3.093bn for 23,774.
In the sixth place came QNB Alahli with a share of 4.3%, and financing of EGP 2.427bn for 17,598 customers, then the Industrial Development Bank with a value of EGP 1.775bn for EGP 16.345bn, or 3.1%.
And in the eighth place came the United Bank with a share of 3% and a value of EGP 1.712bn for 12,918 customers, and in the ninth place came the Arab African International Bank with a share of 2.1% and a value of EGP 1.162bn for 9,969 customers.
In tenth place, Mashreq Bank came with financing amounting to EGP 740.710m for 4,698 customers, or 1.3%.
Source: Zawya
