Sat. May 25th, 2024

 How to Borrow up to 50, 000 Birr from Telebirr without any Collateral

 How to Borrow up to 50, 000 Birr from Telebirr without any Collateral

Ethio Telecom has launched its long-anticipated micro-credit (loan) and saving scheme through its Telebirr mobile money platform.

The state-owned telecom operator, in partnership with Dashen Bank, launched Telebirr Mela, Telebirr Sanduk, and Telebirr EndeKise.

Telebirr Mela is a microloan service that allows users to take out small loans without collateral based on their credit score. Telebirr Sanduk enables users to save money and earn an interest of 7 p.c  on it.

The amount you can borrow from Telebirr depends on the type of loan and your credit score. Here are the details:

 Telebirr Mela (Microcredit): The service supports loans of up to 2,000 birr per day and up to 50,000 birr per month based on the customer’s currency transaction history at the bank.

Telebirr Endekise (Overdraft/Credit Payment Service): This service allows Telebirr customers to complete transactions when they do not have enough funds. The overdraft limit, for payments only, is 2,000 birr.

The eligibility criteria for Telebirr (Endekise) credit payments are as follows:

  • You must be at least 18 years old.  Active SIM card:
  • You must have an active Ethio Telecom SIM card.
  • Active users:
  • You must be an active user of Telebirr and Ethio Telecom products such as data, voice and SMS.
  • Telebirr client duration:
  • You must be a Telebirr customer for at least 3 months.
  • Transaction history:

Your credit score will be calculated based on your six months of Telebirr transactions and telecom usage1. To qualify, you must use at least one Telebirr service transaction in addition to using telecommunications services. Please note that these criteria are subject to change and you should check the latest eligibility criteria on the Telebirr app or contact their customer service for the most accurate information.

Please note that this amount is subject to change and you should check the latest loan limit on the Telebirr app or contact their customer service for the most accurate information. Remember, it is important to read and understand all terms and conditions before requesting any credit service.

To borrow money from Telebirr, you can follow these steps:

  1. Access Financial Services in your Telebirr app.
  2. Choose Telebirr Mela.  Read the terms and conditions, check the box and press Activate.
  3. Select the desired contract available in the Telebirr Mela Service.
  4. Check your available credit limit and offer terms.
  5. Select Apply Credit.

Telebirr Credit Pay (Endekise) interest rates vary depending on the loan term:

 Daily loan: interest rate 1%

Weekly Loan: Interest rate 3% to 6%

Monthly loan: Interest rate 6% to 10%

If you do not repay your Telebirr (Endekise) credit payment on time, this can have several consequences:

 Late fees: You may be charged a late fee. Impact on credit score:

Late or missed payments may be reported to credit reporting agencies, resulting in your credit report being marked negatively, which can harm your credit score. This may make it more difficult to qualify for future loans or other financial services. 

If you do not pay on time, the lender can sue you to recover the amount owed. Depending on the terms of your loan agreement and state law, this could include wage garnishment or bank account taxes.

Collection agency:

The lender may report you to a collection agency, which could further damage your credit score. To avoid these potential problems, it’s important to know the terms of your loan agreement and make sure you can make your payments on time. If you can’t make payments, contact your lender as soon as possible to discuss potential options. In some cases, a lender may be willing to work with you on a payment plan or other solution that meets your needs1. It’s also important to review your credit report regularly and correct any errors or discrepancies so you can maintain a good credit score.


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