Egypt’s financial regulator plans to introduce consumer financing within 2019 to expand funding options for consumers and businesses of all sizes, the body’s chairman said on Wednesday.
Consumer financing is when a business offers financing to their customers. This allows consumers to get an advance or loan to spend money on products or services for family, household or personal uses repaid at a specified future date. Retailers, department stores, banks, and other financial institutions offer consumer financing.
The main advantage of consumer credit is that consumers can purchase goods and services and pay for them later. Consumers can purchase items they need when their funds are low. Consumer financing offers a backup form of payment and one monthly payment.
Consumer financing will be the seventh non-banking financing activities to be introduced by the Egyptian Financial Supervisory Authority (EFSA), Mohamed Omran said at a conference in Cairo. EFSA offers capital markets, insurance, leasing, mortgage, factoring, and microfinance activities.
Omran told reporters the regulator would put the proposal to the community dialogue in the next few days.
