Egypt’s Financial Regulatory Authority (FRA) issued two circulars for the consumer finance sector. It barred companies from financing gold and other precious metal products. It is also introducing new quarterly reporting requirements for interest rates and administrative fees.

The regulator has also required consumer finance companies to submit quarterly data on financing interest rates and administrative fees, starting with 2025 data.

Why You Should Care

The measures affect both the types of purchases that consumer finance companies can finance and the financial information they must provide to the regulator.

The gold and precious metals restriction removes a category of products from consumer finance. Meanwhile, the new reporting requirement gives the FRA regular data on interest rates, rates of return, and administrative fees applied to financing.

This matters for consumer finance companies, customers, and the broader financing market, as the regulator increases oversight while seeking to balance growth with customer protection.

The Details

Under the first circular, consumer finance companies cannot deal in gold bars, gold jewelry, or bars and jewelry made from other precious metals, including silver and platinum. The FRA said these products do not fall within the consumer goods and services eligible for financing under Consumer Finance Law No. 18 of 2020.

The second circular adds a reporting requirement. Consumer finance companies must provide the FRA every quarter with data on the interest rates and administrative fees applied to financing granted by banks, alongside the average rate of return and administrative fees calculated on financing provided to customers. The requirement applies starting with data for 2025.

The Ripple

For consumer finance companies, the first circular narrows the range of products that can be financed by excluding precious metal bars and jewelry from eligible consumer goods and services.

The reporting requirement, meanwhile, gives the FRA a more regular flow of information on financing rates and fees across the sector. The approach follows procedures already used for financing micro, small, and medium-sized enterprises and is intended to strengthen supervisory and regulatory mechanisms.

The measures therefore address two different areas of the consumer finance market: the products companies can finance and the financial data they must report to the regulator.

What to Watch

The new measures are set to support greater transparency and stronger oversight across Egypt’s consumer finance sector. The quarterly data will provide the FRA with regular information on financing rates and administrative fees, while the new rules clarify which products fall within the scope of consumer financing.