Direct Micro-enterprise Loans

Direct Micro-enterprise Loans

Offers subsidized fixed-rate direct loans for Egyptian micro-enterprises in production, service, and commercial sectors.

Egypt's Micro, Small and Medium Enterprises Development Agency (MSMEDA) operates a direct lending program through its own branch network across all Egyptian governorates, providing subsidised loans to micro-enterprises at a fixed annual decreasing interest rate of 5 percent. Individual loan amounts are capped at EGP 200,000 per project, with a maximum repayment tenor of five years. The program targets production, service, and commercial sector businesses, covering both newly established enterprises and existing businesses seeking expansion capital. MSMEDA was established in 2017 under the direct supervision of the Prime Minister and derives its mandate from Law 141/2004 and Law 152/2020.

Since 2022, MSMEDA has financed approximately 493,000 projects and injected EGP 22.7 billion into the micro and small enterprise segment. Young people and women together account for 47 percent of total MSMEDA financing, reflecting the agency's priority allocation to these groups. Bundled non-financial services — including business planning training and ongoing advisory support — accompany each loan. Application requirements include statutory company documents, owner identification, tax and social insurance certificates, three years of financial statements for existing businesses, a feasibility study, and a business growth plan.

This product is a repayable loan, not a grant. Applicants approach MSMEDA directly through any of its governorate branches or regional offices, which conduct on-site assessments before approval. MSMEDA also channels financing through bank and NBFI partners, but the direct branch product allows face-to-face origination for borrowers without existing bank relationships. The program has reached all 27 Egyptian governorates, with particularly large deployment in Upper Egypt (EGP 28 billion over 11 years), Fayoum (EGP 3.1 billion in 2025 alone), and Sinai (EGP 939 million creating 25,000 jobs as of April 2026).