How To Obtain a loan with the 18% Certificate

The National Bank of Egypt (NBE) and Banque Misr both offer this service to their clients.

If you’re looking for the best certificate of deposit on the market at the moment then look no further than the 18% certificate of deposit (C.D) offered by both National Bank of Egypt and Banque Misr.

Faydety is here to let you know how to acquire a loan with the 18% C.D as collateral from both banks.

Get a loan with the 18% C.D as collateral:

• Both NBE and Banque Misr are offering this service to their clients who have purchased one of their 18% certificate of deposit. The loan can be acquired the next day following the purchase of the certificate which cannot be broken until the last installment of the loan has been paid back in full.
• Both banks listed this service as part of their regular financing program.
• No paperwork is required by the bank. All the client needs to do is to apply for the loan using the certificate as collateral and the bank will block the certificate until the loan is paid off. Only an equivalent amount of the certificate to the loan is blocked.

When were the 18% certificates of deposit first offered?

The certificates were announced two weeks ago by the National Bank of Egypt and Banque Misr after the Central Bank announced a 1% increase of interest for the first time in 5 years as well as the depreciation of the Egyptian pound against the dollar.

Interesting to note is that by the end of business hours last Thursday both banks reported that the total sales of the certificate have reached 345 billion pounds and that’s just in the first 11 days since the certificate became available.

More details about the new loan service:

Banque Misr:

Financing percentage: up to 90% of the total value of the certificate. For example, if the certificate is worth 100,000 EGP, then the client will be able to get a loan for 90,000 EGP in cash.

Interest rate: 2% are added annually by the bank on top of the certificate’s original interest. This means the total interest payable on the loan is 20%.

Applicable types of loans: all loans offered by the bank such as car loans, personal loans, consumer durable loans (or durable good loans), Hajj and Umrah loans, club loans, and real estate financing loans (mortgages).

National Bank of Egypt:

Financing percentage ranges between 80-90% of the total value of the certificate depending on the type of financing.

Interest rate: 2% are added annually by the bank on top of the certificate’s original interest. This means the total interest payable on the loan is 20%.

Applicable types of loans: personal loans, car loans, and mortgages.