Consumer Finance Overview

Consumer Finance Products

• Products include consumer loans, likely for non-business purposes.
• Financing for vehicles and other non-business purposes is noted.

Cash Disbursement and Collection

• Minimum disbursement of EGP2000.
• Minimum non-cash collection of EGP500.

Security Methods

• Electronic register for movable assets/collateral
• Customer behavior and professional competence are assessed.
• Principles include transparency, fairness, and non-discrimination.
• Data privacy is essential.

Key Departments

• Financial management, risks, credit, and internal reviews are addressed.
• Human resources, legal, and information technology are key departments.

Internal Policies

• Specific rules and standards for business operations are defined.
• There are procedures for handling customer complaints.
• Transparency regarding calculation of returns and administrative expenses is crucial

Policy for Credit Assessment and DBR

• Credit assessment is conducted to evaluate a customer’s ability to repay loans (DBR).
• An investigation into the customer's income, stability, age, education, type of residence (owned/rented and location), number of dependents in the family, and collateral exists.

AML and KYC

• Customer onboarding (KYC):
  • An investigation into a customer's income, employment, residence type, and family information.
  • Credit and field inquiries are conducted.
  • Age, education level, place of residence are considered.
• Ongoing credit reviews are done annually, with quarterly reports for non-regular clients.
• Assessment of collateral availability.
• Post-funding follow-up systems are in place.

AML (Anti-Money Laundering)

• Includes requirements for customer due diligence.
• Prohibits excessive or unusual sales of goods and services, unexpected early repayments or large deposits.
• Restricts financing to BOD members and relatives up to the second degree.
• Customers refusing to complete KYC are noted.

Financial Worthiness

• Financial strength, operational risk, liquidity risk, and leverage are assessed.
• CAR ratio should be at least 12%.

Operational Risk

• Risk levels are divided into 5 components.

Liquidity

• Liquid assets must be at least 100% of outward cash flow within 30 days.

Financial Statement Notes

• Notes include details about the types and distribution of financing, outstanding financing, and amounts to be paid.

Provision Calculations

• Specific procedures for calculating reserves for potential losses on loans are outlined plus provision for doubtful accounts.

Provision Calculation for Cars and %

• Calculation is noted.

Write-off Requirements

• Procedures for writing off unpaid debts are stipulated, including legal actions.

Reporting

• Reports, including those related to internal controls, are documented .

Internal Audit

• Internal audit procedures and roles are defined.
• Separating roles to maintain company assets and information, approving stock market transactions.