By Ayat El-Battawy
Banque Misr has pledged to increase its credit portfolio for automobile loans by EGP 300 million by the end of the current fiscal year. The bank’s automobile loans portfolio will reach EGP 600m after the increase.
An official with the bank said that automobile loans reached EGP 300 million at the end of the previous fiscal year. The company decided to increase automobile loans because of an increase in demand. The official noted that automobile financing forms an important part of the company’s retail loans, which include credit cards and personal loans.
He noted that recent events in Egypt did not significantly affect the bank’s automobile loans because of BanqueMisr’s clear financial policy.
BanqueMisr offers automobile financing in three programs. The first program requires a deposit as collateral where the bank provides between 90% and 100% of the financing. The second program is for professionals and business owners who can present a business licence, tax ID card, and whose incomes are not less than EGP 3,000 per month. Interest on loans of the second type is between 8.3% and 9%. Loans of the second type include financing of up to 60% for residents of the greater Cairo region and 50% residents of other regions.
The third program allows private or public sector employees to offer a payroll transfer as collateral. In the case of a payroll transfer, the bank will provide financing of 90% with a 7.2% interest rate, while the bank will provide 80% financing with a 8.3% interest rate otherwise.