CAIRO: Cairo Bank announced its intention to increase investing in micro loans for micro enterprises in 2014 to 1.2 billion EGP ($168.6 million). The bank opened five more units for micro loaning, making the total number of 122 units creating more job opportunities, Mubasher Info website reported Tuesday.
“Cairo Bank has a lot of expertise in the field of micro loaning,” Cairo Bank executive chief Mounir Zahed said in a press release. Such expertises lead to 49 percent of the market of micro loans in Egypt funded by Cairo Bank in 2013.
Zahed said this kind of loans leads to increasing job opportunities and raising level of good life for project owners funded through micro loans, Mubasher info added.
The reason behind giving such loans is to reach as many people as possible to make their lives better, Zahed said and that in 2001 the bank started giving such loans. It was one of the first banks to give that kind of loans.
Zahed said 415,000 clients took micro loans including 100,000 woman, which indicates that the bank funded family breadwinning women with 24 percent, especially in poor areas, Mubasher info added.
This program can provide 500,000 job opportunities which can benefit Egypt’s economy.
Bank Misr also announced giving micro loans through a program called Al-Batal (the Hero). This program includes funds starting from 1,000 EGP ($140) to 50,000 EGP ($7,025), Youm7 reported on April 24, 2014. The loan is paid in installments for two years with fixed return.
“There is a gap of 27 billion EGP ($3.87 billion) between the needed funding and what is actually available,” head of the Federation of Economic Development Associations Fouad Thabet told the Cairo Post on Feb. 18 regarding micro loans for micro enterprises.
Requested funding for microenterprises totals 30 billion EGP ($4.3 billion), whereas what is available is only around 3 billion EGP ($430 million), according to Thabet.