Bedaya launches Egypt’s first non-bank mortgage finance app

The Egyptian mortgage market is currently both underserved and under-penetrated

  

The Bedaya Mortgage Finance Company, Egypt’s first non-bank online mortgage provider, announced on Monday that it has launched the country’s first non-bank mortgage finance mobile application and online platform.

The application will allow users to apply for one of Bedaya’s numerous mortgage finance offerings seamlessly and rapidly. 

Through the application, users can calculate the expected cost of their mortgage, upload documents, and pay fees. It also includes a list of approved real estate projects that clients can choose properties from without having to provide supporting project-related documents. 

The same interface is available on the company’s website, and has been designed as native to all devices to ensure accessibility through desktops, tablets, or mobile phones. 

Tarek Abou Gendia, Bedaya CEO and MD, said, “At Bedaya, we pride ourselves on having the fastest turnaround time in the industry, so I could not be prouder of the fact that since inception we have been working on architecting and building a seamless experience through an innovative app that gives clients instant access to facilitate their mortgage finance needs.” 

“The Egyptian mortgage market is currently both underserved and under-penetrated, and as a result, our ultimate goal with this launch is to expand accessibility to mortgage financing, which is often a long and cumbersome process,” Abou Gendia said, “This key access to financing is also expected to see the secondary market pick as it is currently a buyer’s market and will likely remain to be for the foreseeable future.” 

He added that 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. 

Bedaya is a joint-venture launched in 2019 by EFG Hermes, Talaat Moustafa Group (TMG), and GB Capital (the NBFI arm of GB Auto). It provides diverse mortgage financing solutions over 10-year repayment periods at competitive interest rates, allowing clients to purchase residential, commercial, and administrative properties in Egypt. 

It funds up to 90% of the current property value for residential and 80% for commercial units, capped at EGP 25m and EGP 50m, respectively. Likewise, clients can refurbish their properties through its Ijarah programme. 

Walid Hassouna, CEO of the Non-Bank Financial Institutions (NBFI) platform at EFG Hermes, said, “Bedaya’s innovative online and mobile platforms are part and parcel of our strategy to offer a comprehensive, diverse range of non-bank financial services that fulfil unmet consumer needs.”

“In its first two years of operations, Bedaya has grown its portfolio to EGP 300m, attesting to the strength of its service offering and real demand for its long-term and competitive mortgage financing programmes,” he added. 

Hassouna also noted that Bedaya’s unique value proposition, coupled with his company’s NBFI track record when it comes to fintech solutions, gives him confidence that EFG Hermes has the tools in place to gain a solid foothold in the market.

As a vital sector of the economy, real estate maintains its reputation among investors as a safe haven, particularly as Egypt’s population strongly grows. Household formation also continues to provide stable and sustained demand for residential and commercial real estate assets. 

Increased financial solutions, including developers offering long-term financing schemes catering to the needs of customers seeking both off-plan and secondary market transactions.

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