Egypt’s NBD allocates EGP 200 million to finance micro-enterprises
Tuesday, October 16, 2012
Nevine Loutfy, CEO and Managing Director of NBD, said, “The bank’s aim from offering Shari’ah-compliant micro-financing is to address the banking needs of a market segment that has been largely marginalised in terms of receiving financing services, with the end goal of elevating their standard of living and encouraging entrepreneurship.”
NBD was the first commercial bank to launch microfinance in Egypt in 1989. Starting with five financing units, the number of microfinance units grew over the years to reach the current number of 39 spread across 17 governorates nationwide. Moreover, NBD developed to be the only bank in Egypt to offer Shari’a compliant micro financing.
The microfinance programmes that NBD offers range from EGP 1,000 up to EGP 50,000, with repayment in fixed installments up to two years without collateral in accordance with Islamic Shari’ah. The bank seeks to serve a large customer base and encourage local skills and crafts while preserving those that are in danger of extinction, while supporting projects launched by women in rural and urban areas – especially breadwinners and small-crafts entrepreneurs.