The Social Fund for Development (SFD) aims to inject funds worth EGP500 million (around $27.6 million) to small enterprises in Egypt before the end of the year.
SFD began direct lending small enterprises in May 2016, Hany Emad Aldin Mohamed, deputy general manager for credit and investment at SFD.
Since May 2016, SFD has injected EGP 2.25 billion into small projects, Mohamed said. Many clients have paid back the loans, leaving outstanding loans worth EGP1.1 billion.
The fund established a direct loans department to grant clients with loans through 31 offices across the republic, he said, adding that small enterprise owners are granted loans to finance capital, equipment, and machines.
The loans range between EGP10,000 and EGP2 million. The funding can rise to EGP10 million for renewable energy projects.
Procedures for availing loans differ according to the loan value as loans are categorised in to five groups according to size—between EGP10,000 and EGP20,000; EGP20,000 and EGP50,000; EGP50,000 and EGP150,000; and EGP150,000 and EGP2 million.