Editor
Looking for a quick and easy way to borrow money in Ethiopia? The Telebirr app from Ethio Telecom offers a digital loan service that’s transforming financial access for millions. Whether you need cash for personal use or to grow your business, here’s what you need to know about Telebirr loans and how to get started.
What Is the Telebirr Loan Service?
Launched in May 2021, Telebirr is Ethio Telecom’s mobile money platform, designed to bring financial services to everyone—including those without traditional bank accounts. Its microcredit service lets eligible users borrow money digitally through options like microloans, overdrafts, and specialized credit products in partnership with Dashen Bank and the Commercial Bank of Ethiopia (CBE). It’s fast, convenient, and perfect for individuals, merchants, or agents needing accessible financing.
Requirements to Access Telebirr Loans
To qualify for a Telebirr loan, you’ll need:
1. An active Telebirr account with an Ethio Telecom mobile number, registered with KYC details (e.g., a valid ID like a Kebele ID, passport, or driver’s license, plus a recent photo).
2. For some loans, like the Dildiy merchant loan, at least three months as an active merchant or agent.
3. No history of fraud or overdue loans with Ethio Telecom.
4. For merchant loans, a signed contract with Ethio Telecom and possibly a renewed business license and TIN.
5. For specific loans like Enderas or Mela Medaresha, your salary must be paid via Telebirr (common for partnered institution employees).
These ensure the service stays secure and reliable.
How to Get a Telebirr Loan
Getting a loan is simple:
1. Download the Telebirr app from Google Play, the App Store, or Ethio Telecom’s app store. Register with your mobile number, verify it via SMS to 127, and set up your profile.
2. Open the app or dial *127#, log in with your PIN, and go to the loan section.
3. Pick your loan type—overdraft, microloan, or a specialized option like Mela or Enderas—based on your eligibility.
4. Apply by following the prompts, reviewing terms (repayment periods and fees), and accepting the agreement.
5. Once approved, funds hit your Telebirr account as E-Money, ready to use instantly.
No bank visits needed unless a physical contract is required.
Three Key Things to Know
1. Repayment Terms: Loans range from 1 day to 60+ days, with strict deadlines—late payments may mean penalties.
2. Facilitation Fees: Expect fees like 4% for a 10-day loan or 21% for a 60-day loan—check your specific terms.
3. Usage Rules: Loans are for legitimate purposes only; misuse can suspend your account.
Dashen Bank Loans: Mela and Mela Medaresha
With Dashen Bank, Telebirr offers:
– Mela: Small loans for individuals and merchants based on 6 months of Telebirr activity. Repayment options are 1-day (1% fee), 7-day (1% initial + 0.35%–1.2% daily fees), or 30-day (3% initial + 0.35%–1.2% daily).
– Mela Medaresha: For salaried employees paid via Telebirr, repaid over three monthly deductions. Overdue loans may tap your Dashen savings or face legal action.
CBE Loans: Enderas and Adrash
Partnered with the Commercial Bank of Ethiopia:
– Enderas: Microcredit with terms like 10-day (4% fee, up to 4,000 ETB), 25-day (9% fee, up to 10,000 ETB), or 60-day (21% fee, up to 15,000 ETB).
– Adrash: For salaried Telebirr users, with 1–4 month repayment and fees from 4% to 14% (e.g., 10% for 3 months). Nonperforming loans can be recovered from your CBE account or assets.
Why It Matters
Telebirr loans are a game-changer for financial inclusion in Ethiopia, offering digital credit without traditional banking hassles. To stay eligible, meet the requirements, understand the fees, and repay on time. For more info, visit Ethiotelecom.et or dial 127.
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