Friday, March 29, 2024
spot_img
Editor's PickEgyptian Islamic fintech solutions grow with launch of mobile mortgage financing app

Egyptian Islamic fintech solutions grow with launch of mobile mortgage financing app

An Egyptian mortgage financier has rolled out what it claims to be Egypt’s first digital non-bank mortgage finance mobile application which provides an Ijarah digital solution, expanding the Islamic fintech solutions universe for the North African nation.

Bedaya Mortgage Finance Co, a joint venture between EFG Hermes, GB Capital and Talaat Moustafa Group, came to market in 2019 as Egypt’s first online mortgage provider. It has now developed a mobile app which allows consumers to apply for mortgage financing — including an Ijarah-structured scheme. Its solutions are applicable for residential, commercial and administrative properties in Egypt. It funds up to 90% of the current property value for residential units and 80% for commercial units, capped at EGP25 million (US$1.59 million) and EGP50 million (US$3.19 million) respectively. Likewise, clients can refurbish their properties through its Ijarah program.

Through the app, users can calculate the expected cost of their mortgage as well as have access to approved real estate projects without the need to provide supporting project-related documents.

“The Egyptian mortgage market is currently both underserved and underpenetrated. Our ultimate goal with this launch is to expand accessibility to mortgage financing, which is often a long and cumbersome process,” Bedaya CEO and Managing Director Tarek Abou Gendia explained. “This key access to financing is also expected to see the secondary market pick [up] as it is currently a buyer’s market and will likely remain to be for the foreseeable future. The market has been lacking the availability of affordable financing solutions such as mortgage finance, which is a natural financing venue as seen in markets abroad.”

Since it commenced operations two years ago, Bedaya has grown its portfolio to EGP300 million (US$19.14 million). This track record, according to Walid Hassouna, CEO of the non-bank financial institutions (NBFIs) platform at EFG Hermes, speaks of the demand for its service. “Its unique value proposition, coupled with our NBFI companies’ track record when it comes to fintech solutions, give me confidence that we have the tools in place to gain a solid foothold in the market.”

The Islamic fintech market in Egypt is a fledgling one. Two other start-ups have been identified by the IFN Islamic Fintech Landscape as providers of Shariah compliant digital financial solutions: Money Fellows and thndr.

LEAVE A REPLY

Please enter your comment!
Please enter your name here