42.26 billion pounds.. 4 banks pump money in real estate financing initiative

 The 4 largest banks participating in the real estate financing initiative for low-income individuals pumped financing worth EGP 42.260 billion by the end of July 2023, with a share of 68.8% of the total bank financing within the initiative.

National Bank of Egypt

The National Bank of Egypt topped the list of banks that granted the most financing within the initiative, with loans exceeding 16.455 billion pounds, to more than 139.7 thousand customers, with a share of 26.8%.

Banque Misr

Banque Misr’s financing amounted to 14.9 billion pounds for about 121.2 thousand customers, with a share of 24.2%, followed by the Housing and Development Bank, with financing of 6.8 billion pounds for about 71.3 thousand customers, with a share of 11.2%.

Banks and companies

Banks and companies participating in the real estate financing initiative for low-income individuals have pumped funds to purchase housing units at a value of 61.46 billion pounds, for about 522,306 thousand customers, until the end of July 2023.

Real estate financing initiative

The Central Bank of Egypt launched a real estate financing initiative in February 2014 with subsidized decreasing interest for the low- and middle-income segments, with an interest ranging from 5 to 7 percent.

In 2021, President Abdel Fattah El-Sisi instructed the Central Bank to formulate and launch a new real estate financing program for the benefit of low- and middle-income groups to support their ability to own housing units, through long-term loans of up to 30 years and with low and simplified interest that does not exceed 3%.

Real estate finance companies

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.

Mai Abdel Hamid, head of the Social Housing and Real Estate Finance Support Fund, revealed in exclusive statements that the 22 banks participating in the initiative pumped about EGP 59.125 billion until the end of last July, benefiting about 503.183 thousand customers from these funds.

The head of the Social Housing Fund explained that real estate finance companies pumped real estate financing to low-income people at a value of EGP 2.33 billion, benefiting about 19.1 thousand customers, accounting for 3.8% of the total financing within the initiative.