FRA Raises Micro-Enterprise Loan Limit to LE 266,000
These adjustments aim to address economic fluctuations, counter inflation, and implement the Unified Insurance Law.
Egypt’s Financial Regulatory Authority (FRA) has increased the maximum loan limit for micro-enterprises to LE 266,000, up from LE 242,000, marking a 10% increase under Decision No. 17 of 2025. Additionally, micro-insurance coverage has been raised to LE 312,500, up from LE 250,000, as part of Decision No. 18 of 2025.
These adjustments aim to address economic fluctuations, counter inflation, and implement the Unified Insurance Law while supporting financial inclusion and Egypt’s broader economic development plan. In 2024, micro-insurance coverage had previously been raised by 25% to LE 250,000 under Decision No. 268 of 2024.
The FRA board, under Law No. 201 of 2020 - which amended Law No. 141 of 2014 - holds the authority to modify loan limits in response to economic conditions. These regulatory changes are expected to strengthen Egypt’s non-banking financial sector, encourage investment in micro, small, and medium enterprises (MSMEs), and ensure the sustainability of businesses engaged in micro-finance.
Between January and November 2024, total financing provided through Egypt’s micro-finance sector reached LE 73.9 billion, benefiting 3.1 million individuals. As of November 2024, outstanding financing balances stood at LE 61.4 billion.
- Previous Article MSMEDA Allocates $51 Million to Support 95,000 Projects in Qena
