The National Bank of Egypt (NBE) has financed the purchase of 8,600 low- and middle-income housing units with EGP 700m, as part of an initiative launched by the Central Bank of Egypt (CBE), according to Hazem Hegzay, the executive chairperson of the bank’s retail banking and small- and medium-sized enterprises (SME) department.
Hegazy attributed the bank’s success in being able to finance its large number of clients to its ongoing cooperation with concerned parties, such as the CBE and the Mortgage Finance Fund (MFF), in addition to covering all geographic areas in Egypt.
“The bank has also launched the mortgage financing product in order to enable the low- and middle-income classes to buy housing units in all the new urban communities and the housing projects for low-income families all over the republic. These projects are made available for a low price with long payment periods of up to 20 years,” said Hegazy.
Hegazy explained that the product aims to offer financing to employees, business owners, as well as self-employed individuals to enable them to purchase housing units according to the specifications by the initiative, with an annual return rate of 5% or 7% for low income individuals and 8% for middle income individuals. While the return rate for above middle income individuals is 10.5%.
Hegazy pointed out that the bank is keen on financing the purchase of low- and middle-income housing to emphasise upon the role it plays in supporting national projects that can ease the burden on citizens and help the advancement of the national economy.