Aman for Microfinance, a subsidiary of Raya Holding for Financial Investment, has obtained approval to offer funding to its customers through pre-paid cards, the company’s managing director Ahmed El Khatib said.
These cards will be launched in October in collaboration with the National Bank of Egypt (NBE) which has received the Central Bank of Egypt’s (CBE) approval in a bid to streamline the required procedures for obtaining loans, El Khatib told Mubasher.
Aman for Microfinance will also enter into agreements with other banks including Banque du Caire and Banque Misr to disburse its funding through cheques.
In July, the Financial Regulatory Authority (FRA) approved Aman for Microfinance’s request to collect instalments from its clients through its sister company Aman Electronic Payment Technology.
From June 2018 to August 2019, the company injected funding worth EGP 467 million into around 43,000 projects, El Khatib revealed.
Over the next four months, Aman for Microfinance aims to increase its funding portfolio to EGP 700 million by the end of 2019, by pumping EGP 233 million into about 17,000 customers, he added.
In 2020, the company plans to pump micro-funding worth EGP 1.6 billion, he noted.
Moreover, Aman for Microfinance also aims to increase its capital to EGP 100 million by the end of 2019 and then to EGP 150 million in 2020 from the current EGP 75 million.
The company owns a 10% share in the micro-funding market, with plans to reach 20% by 2020, El Khatib remarked.
Aman for Microfinance is also in talks with Attijariwafa Bank, Blom Bank, the United Bank of Egypt, Credit Agricole, and Arab Bank to borrow EGP 500 million to be directed to micro-enterprises, he revealed.