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Help Center, Products Description

What's Personal Loan & its Cost?

What is a personal loan?

A personal loan is a type of loan given by banks to individuals without an asset guarantee for a period of between 1 to 10 years.

What’s the difference between a personal loan and a car or home loan?

The difference is car loans and home loans are guaranteed by the asset they are used to purchase (whereby the bank can take the asset if you do not pay your loan). Whereby a personal loan is only related to your future income streams (typically a salary or other forms of income)

What do I need to be eligible for a personal loan?

Most personal loans are given to salaried employees, but they can also be given to professionals (doctors, lawyers, etc. who are freelancers) or to Self Employed.

  The required documents for the personal loan are :

  • A proof of income (Human resources issued letter “HR Letter” or historical bank statements)
  • A positive credit rate (a good I-Score result)
  • A balanced Debt Burden Ratio (DBR), which means that the amount you are looking to borrow added to your existing loan obligations does not exceed your ability to pay back the amount based on your proven income. For example:  Your obligations shouldnt exceed 50% of your salary.

What are the typical documents needed?

The documents needed for a personal loan differ based on your employment type and on the bank extending the loan. The following are Required documents for the personal loan :

·         General (for all):

o   Valid National Identification (National ID or Passport)

o   Proof of Address (Rental contract or utility bill)

·         If an Employee:

o   HR Letter specifying (i) Net income, (ii) hiring date, and (iii) position

o   Bank statements for the last 3 to 12 months proving income level (depending on the bank extending the loan)

·         If a Professional:

o   Bank statements for the last 3 to 12 months proving income level (depending on the bank extending the loan)

o   Valid Syndicate Card

o   Practice Certificate (if applicable)

O Tax card  

·         If Self Employed:

o   Bank statements for the last 3 to 12 months proving income level (depending on the bank extending the loan)

O Commercial register

O Tax card 


How much does a personal loan cost?

There are three main variables to take into account when looking at the cost of a personal loan:

  1. Interest Rate: (For more information about interest rates please refer to the Interest rate Section of the Help Center )The interest rate is the main cost factor when taking a personal loan and it is the amount that is charged depending on the period of the loan. Interest rates are expressed in two formats but they both lead to the same interest amount:
  2. Decreasing Interest Rate: This rate is the percentage to be charged against only the outstanding amount of the loan in any given period
  3. Flat interest rate: This rate is a different presentation format which showed the percentage to be charged against the initial amount borrowed.

Please remember that the flat interest rate is a different representation of the Decreasing Interest Rate and they should not be compared

  1. Administrative Fees: The administrative fees “Admin Fees” are fixed fees that are charged in the beginning of the loan as a fixed one-time payment that are deducted from the amount you are borrowing. Admin fees range from 1% to 4% depending on the bank.

Please remember that Admin fees are deducted from the amount you are borrowing as an initial payment. So, if you are borrowing LE 100,000 and your bank charged an Admin Fee of 2.00%, the bank will only transfer LE 98,000 to your account but your installments will be based on a loan of LE 100,000.

  1. Stamp Duty: The Central Bank of Egypt charges 0.05% per quarter on the outstanding balance of the loan (basically the amount you still owe). This is standard between all banks.

How long can I borrow the money for?

The typical period for personal loans is between 1 to 10 years and that will be available in the majority of banks. Some banks lend for periods as little as 6 months and as long as 10 years. Make sure to check which banks offer loan periods that suit your needs.

How do I apply for a personal loan?

Currently you apply for a personal loan by either calling the call center of your bank or visiting a branch, a loan officer will take you through the process. 

APPLY ONLINE: Now you enable you to apply Online for personal loans with Faydety from the comfort of your own home, office, or even coffee shop. Visit our credit card page ( to apply now for free.

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