The Financial Regulatory Authority (FRA), chaired by Mohamed Farid, has issued Decree No. 138 of 2025 amending Decree No. 81 of 2023 to raise the cap on pre-disbursed consumer cash finance to EGP 50,000 per client—up from EGP 10,000. The move is part of the FRA’s broader push to promote financial and consumer inclusion by offering a wider range of financing options tailored to client needs.
Under the new amendment, once a customer receives a credit limit from a licensed consumer finance provider based on their creditworthiness, they may access pre-disbursed cash financing of up to EGP 50,000, regardless of their overall credit ceiling.
However, clients will not be eligible for additional cash financing until they provide documentation proving that the previous loan was used for its intended purpose and fully repaid. This includes submitting invoices or similar proof of the original purchase, ensuring responsible borrowing and safeguarding the financial stability of the consumer finance sector.
The decree also reinforces the FRA’s digital transformation strategy. It requires finance companies to digitise their operations, including data storage, transaction categorisation, and sectoral classification of financed goods and services. Companies must implement robust systems for managing, monitoring, and reporting on pre-disbursed cash financing, supported by advanced information technology infrastructure.
Additionally, the decree mandates the use of electronic payment methods for both disbursing funds and collecting instalments. This aligns with Law No. 18 of 2019, which governs non-cash payment methods in non-banking financial transactions and supports Egypt’s national financial inclusion objectives.
Specifically, cash disbursements are capped at EGP 2,000, and cash instalment payments must not exceed EGP 500. Any amounts above these thresholds must be processed through electronic payment channels. Finance companies are also required to provide secure, appropriate facilities for disbursing funds and conducting related financial transactions.
Moreover, the decree requires consumer finance companies to obtain prior FRA approval before launching any new cash finance products. Companies must verify that clients use disbursed funds for their declared purpose and back this with relevant documentation, such as invoices. A three-month grace period from the decree’s effective date has been granted for companies to comply and to submit proof of adherence to both the original and amended regulatory requirements.
The FRA reaffirmed its commitment to continuously monitoring market conditions and adapting the regulatory environment to meet evolving needs and economic challenges—ensuring the protection of all stakeholders and fostering the growth of Egypt’s non-banking financial sector.
