The Aman installment system, a financial service from Raya Holding, has become a significant force in Egypt's consumer finance landscape. It provides a credit mechanism for purchasing goods and services, allowing repayment in monthly installments. This system primarily benefits consumers who require accessible credit without navigating the stringent requirements of traditional banking. Key considerations for any potential user are the trade-off between this accessibility and the higher cost of credit compared to conventional bank loans. Understanding the fee structure, interest rates, and repayment obligations is necessary before entering into any agreement.
What is the Aman Installment System?
Aman for Financial Services operates as a non-bank consumer finance company licensed by Egypt's Financial Regulatory Authority (FRA). The core service allows customers to buy items immediately from partner merchants. Aman pays the merchant the full price upfront. The customer then repays Aman over a pre-agreed period through fixed monthly payments. This model, often called Buy Now, Pay Later (BNPL), removes the barrier of a large one-time expense for consumers, spreading the cost over several months.
The company's operational scale is substantial, reflecting its deep integration into the Egyptian market. As of early 2026, Aman serves a base of approximately 40 million customers through a physical network of 458 branches spread across 27 governorates. Its digital presence is centered around the Aman Super App, which complements its physical footprint. The system is supported by a network of over 5,000 affiliated merchants, giving consumers a wide choice of retailers for electronics, furniture, and other goods.
Functionally, the process begins at the point of sale. A customer selects an item at a partner store and expresses their intent to use Aman for payment. An application is submitted either in-store or via the app. Aman then performs a quick credit assessment. Upon approval, the transaction is completed, and the customer leaves with their purchase. The repayment cycle typically begins the following month, managed through the app or other payment channels.
Eligibility and Required Documentation
Aman maintains a set of standardized eligibility criteria for applicants seeking installment financing. The baseline requirements are straightforward. Applicants need to be between 21 and 62 years of age and must hold a valid Egyptian national identification card. A verifiable source of income is also a standard prerequisite, though Aman's model is notable for its acceptance of various income types beyond formal salaried employment. This approach broadens access to credit for a larger segment of the population.
The documentation required varies based on the applicant's employment status. For salaried employees, the process involves submitting a copy of their national ID, an HR letter from their employer, and recent salary slips. Self-employed individuals must provide a tax card, commercial registration, and often an income certificate from a certified accountant. Pensioners can apply using their national ID and a recent pension statement. Aman also has provisions for temporary and informal workers, who can use documents like utility receipts or club membership cards as part of their application, often alongside a guarantor.
Beyond income proof, applicants must provide a recent utility receipt (electricity, gas, or water) to verify their residential address. This document should match the address listed on the national ID. In cases where the credit profile is weaker or the financed amount is high, Aman may require a guarantor. The guarantor must also provide their national ID and potentially proof of income, accepting liability for the debt if the primary applicant defaults on payments.
The Application Process Step-by-Step
Aman offers two primary channels for submitting a financing application: digitally through the Aman Super App or in-person at one of its branches. The online method is generally the faster route, with a stated approval time of around 24 hours. The process begins with creating an account on the app, completing a personal profile, and uploading digital copies of the required documents, such as the national ID and income proof. The applicant then specifies the desired purchase amount and selects a repayment tenor.
Once submitted, the application enters a verification phase. Aman's system performs a Know Your Customer (KYC) check and consults Egypt's national credit bureau, I-Score, to evaluate the applicant's credit history. The risk assessment team analyzes income stability and existing debt to determine a suitable credit limit. An approval, rejection, or request for more information is communicated via SMS and an in-app notification. If approved, the customer can immediately use their credit limit at partner stores.
The in-person process at a branch follows a similar structure but involves physical paperwork. An applicant brings original documents to the nearest branch, where a representative assists in filling out the form. The verification and credit assessment steps are the same, although the approval timeline might extend to 48 hours. Upon approval, the customer signs a standardized financing contract that outlines all terms, including the total purchase price, interest rate, monthly installment amount, and repayment schedule.
Interest Rates, Fees, and Repayment Terms
The cost of credit is a central factor when evaluating Aman's services. The company charges a monthly interest rate that typically falls between 1.6% and 3%. This translates to an annual percentage rate (APR) of approximately 19.2% to 36%. The exact rate assigned to a customer depends on their individual credit assessment, income level, and the duration of the installment plan. These rates are generally applied on a flat basis, meaning interest is calculated on the initial principal amount for the entire loan term.
In addition to interest, customers should account for several fees. A one-time administrative or processing fee, ranging from 1% to 3% of the financed amount, is common. Late payment penalties are another consideration. Failing to pay an installment on time typically incurs a fee of 1% to 2% of the overdue amount. These penalties can accumulate, significantly increasing the total cost of borrowing if payments are not made punctually. All such costs are regulated by the FRA and must be disclosed in the financing contract.
| Aspect | Aman Installment System | Typical Bank Installment Plan |
|---|---|---|
| Approval Time | ~ 24 hours (online) | 3-7 business days |
| Monthly Interest Rate | 1.6% - 3.0% (Flat) | 0.5% - 1.5% (Reducing) |
| Documentation | Minimal income proof | Extensive credit history, bank statements |
| Eligibility | Salaried, self-employed, pensioners, informal sector | Primarily formal sector employees |
| Maximum Tenor | Up to 36 months | Up to 60 months |
| Processing Fees | 1% - 3% | 0.5% - 1.5% |
Aman provides a range of repayment tenors to offer flexibility. Customers can choose payment plans as short as three months or extend them up to 36 months for higher-value purchases. Common options include 6, 12, 18, and 24-month plans. While longer tenors result in lower monthly payments, they also lead to a higher total interest paid over the life of the loan. Some contracts may include provisions for early settlement, which could potentially reduce the total interest paid, but the specific terms for this must be verified in the individual contract.
Benefits and Risks: A Balanced View
The primary advantage of the Aman system is its role in promoting financial inclusion. It provides credit to individuals who might otherwise be excluded from the formal financial system, including the self-employed and those in the informal economy. This accessibility is paired with a fast and convenient application process that contrasts sharply with the often lengthy procedures of traditional banks. For many, the ability to secure financing within 24 hours with minimal paperwork is a significant benefit.
Another key benefit is the financial flexibility it offers. By converting large, prohibitive expenses into smaller, manageable monthly payments, Aman enables consumers to acquire necessary goods without depleting their savings. The broad network of partner merchants and the availability of repayment plans up to 36 months give users considerable choice and control over their purchasing and budgeting. The digital management of accounts through the Super App adds a layer of modern convenience.
Advantages
- Inclusive eligibility for various income types
- Fast online approval, often within 24 hours
- Simpler documentation compared to banks
- Wide network of over 5,000 partner merchants
- Digital account management via mobile app
Considerations
- Higher interest rates (19.2%-36% APR)
- Risk of over-indebtedness from easy credit
- Late fees and negative I-Score reporting
- Total repayment cost is much higher than cash price
- Potential for customer service challenges
On the other side of the ledger are tangible financial risks. The interest rates, while competitive within the consumer finance sector, are substantially higher than those offered by banks for personal loans or credit card installments. This means the total cost of an item purchased through Aman will be significantly greater than its retail price. Easy access to credit can also lead to over-indebtedness if consumers take on more debt than they can comfortably repay. Missed payments not only trigger financial penalties but are also reported to the I-Score credit bureau, which can damage an individual's credit rating and hinder their ability to secure financing in the future.
Regulatory Landscape and Market Context (2026-2026)
Aman operates within a regulated environment overseen by both the Financial Regulatory Authority (FRA) and the Central Bank of Egypt (CBE). The FRA is the direct regulator for non-banking financial institutions, and its rules mandate transparent disclosure of all rates and fees, standardized contracts, and fair consumer practices. Recent regulations, such as FRA Decision No. 177 of 2026, have reinforced these requirements to enhance consumer protection across the sector.
The broader market context reveals a rapidly growing demand for consumer finance in Egypt. The market size reached EGP 61.3 billion in 2026, a 29.6% increase year-over-year. This growth reflects a structural shift in consumer behavior toward installment-based purchasing. Aman is a major participant in this trend, with its own consumer finance issuances growing to EGP 5.6 billion in 2026. The company’s revenues climbed 41% in the same year, reaching EGP 6.4 billion.
Recent directives from the CBE, under Law No. 194 of 2020, are also shaping the digital payments ecosystem where Aman operates. New licensing regulations issued in June 2026 require all payment service providers to meet stricter governance, capital, and operational standards by a June 2026 deadline. This evolving regulatory framework aims to ensure stability and security as the digital finance sector expands, placing greater compliance responsibilities on companies like Aman and providing stronger safeguards for consumers.