Central Bank : Doctors in the Small Enterprise Initiative

The Central Bank of Egypt recently announced the decision to include doctors in the Small Enterprise Initiative at a 5% diminishing interest rate. The Small Enterprise Initiative was established on 11^th January 2016 to finance companies and small businesses at a 5% diminishing interest rate. Over the past few years there have been several amendments to the initiative.

The amendment implemented by the Central Bank will allow doctors, physiotherapists, and dentists who are members of the Egyptian Medical Syndicate to benefit from the Small Enterprise Initiative without adhering to the legal forms or the minimum size of business restrictions. 

Purchase of medical equipment:

The Central Bank declared that the purpose of the amendment is to facilitate the purchase of medical equipment and devices. Central Bank also asserted that regular checkups will be made to confirm whether the purchased equipment is being used properly and for their intended purpose.

The Central Bank also stressed the importance of the role of banks in including doctors in the electronic payment system as part of the Digital Transformation and Financial Inclusion Initiative.

Participating Banks:

Banque Misr:

The bank offers several financing services that comply with the needs of small businesses whose annual turnover ranges from 1 million to 50 million with a 5% diminishing interest rate. This is available for businesses in the industrial and service sectors that meet the conditions set by the Central Bank as follows:

For Existing Businesses:

Total revenue between one and fifty million EGP

First: companies that do not have existing financial services with Banque Misr and have been established for more than a year. The company must submit the last 3 approved financial statements (or the available statements since the beginning of the business) in addition to all the documents required for applying for loans and financial facilitations offered by the bank.

                Businesses whose turnover is up to 10 million EGP may be granted financing for a maximum of 2 years from the day the loan is granted without providing financial statements taking into account the conditions that verify the integrity of the client’s financial status.

Second: companies that do not have prior financial history with Banque Misr and do not have financial statements. These businesses must provide the latest verified statement along with all other required documents for a loan application.
 

For Newly Established Businesses (in existence for less than a year):

Capital: the paid-up capital must be between 50 thousand and up to 5 million EGP for businesses in the industrial sector and between 50,000 and 3 million EGP for non-industrial enterprises.

All documents required for in a loan application must be submitted as usual.