Medaresha

The Contract:

This contract sets out the complete Terms and Conditions (hereinafter called "These Terms and Conditions") which shall be applicable to mela micro-credit service.

These terms and conditions, as well as any related amendments or changes, will become effective once the individual customer has read and accepted them (by clicking on the option to “Activate”.

1.  Definitions

In these Terms and Conditions, the following words and expressions bear the below meanings:

• "Bad debit" is a debt that has not been paid within 90 days after the due date.
• "Dashen Bank" means a regulated financial institution agreed to provide Mela micro credit services to telebirr customers in collaboration with Ethio telecom.
• “Daily fee” means the fee paid by individual customers on daily basis for the number of days that the principal amount is not paid within the contract period.
• "Due date" is the last date in which the individual customer Is expected to complete his credit repayment.
• “Electronic Money/E-Money” means the electronic monetary value depicted in customers’ telebirr account representing an equal amount of cash in Ethiopia Birr and operated by Individual customers.
• "Ethio telecom" means a licensed payment instrument issuer agreed to facilitate  Mela micro credit services to its telebirr customers in collaboration with Dashen Bank.
• “Facilitation fee” means a fee paid by individual customers on the first day of using the Mela micro credit service
• “Individual customer”means a natural person who has telebirr account and agreed to use mela micro credit service
• "Mela Medaresha Micro Credit service" means micro credit service provided by the Dashen Bank in collaboration with Ethio telecom via telebirr platform to employees of private and public institutions based on the agreement with their respective institutions.
• "Mela Micro credit Service" means Micro creditservice provided by Dashen Bank in collaboration with Ethio Telecom that enables individual customers to access credit service through telebirr channels in accordance with these terms and conditions set forth below.
• "National Bank of Ethiopia (NBE)"means the institution with the authority to license and supervise financial institutions in accordance with Proclamation No. 718/2011 (as amended by 1282/2023)
• "Penalty fee" means the fee which individual customers shall be charged if they fail to honor their commitments on time.
• "telebirr" means trade name of Ethio telecom mobile money service used to access financial services.
• "Telebirr Account" means account opened for telebirr user to store, send, and receive electronic money.
• The word“individual " shall include both the masculine and the feminine gender.
• "We," "our," and "us," mean Dashen Bank and Ethio telecom.
• Words expressed feminine also applicable to masculine.
• "You" or "your" means the individual Customers and includes the individual's personal representatives.

2. Acceptance of the Terms and Conditions
   • Dashen bank, in collaboration with Ethio telecom, offers this credit service, Dashen bank owns and controls the money used to provide the credit services
   • To activate the mela micro credit and services, individual customers can use USSD (*127#) or telebirr super App.
   • Before applying to use mela micro credit services you should carefully read and understand these Terms and Conditions which will govern the use and operation of mela Micro Credit service.
   • If you do not agree with these Terms and Conditions, please do not click the “activate”
   • You will be deemed to have read, understood, and accepted these Terms and Conditions upon clicking on the “Activate” option on the Menu requesting you to confirm that you have read, understood, and agreed to abide with these Terms and Conditions; and/or by using or continuing to use and operate Mela micro credit Service.
   • You acknowledge and accept the Mela Microcredit services and agree to conduct business with Ethio Telecom using only electronic means via Telebirr to operate the Mela Microcredit services.
   • The terms and conditions can be modified or changed at any time by Ethio telecom and/or Dashan Bank, upon these changes,  notification will be sent to you through appropriate communication channels. The updated term and condition will be binding on the customer from the date they are published on the telebirr App, portal, or website.
   • Once the Terms and Conditions are accepted electronically, they shall constitute a legally binding contract between you and us. You are not allowed to transfer any of your rights or obligations under this agreement to anyone else.
   • The individual customer agrees to use the credit only for lawful purposes.
3. Activation for Mela micro credit Service

To activate Mela micro credit service with Ethio telecom and Dashen Bank, you must be at least:

• Able to read, understand and accept these terms and conditions.
• Should be 18 years old and above.
• Have an Ethio telecom active SIM card.
• Active user of telebirr and Ethio telecom products such as Data/Voice/SMS.
• Stay on network for (3) (three) months and above after registered for SIM card and telebirr services.

4. Eligibility Criteria to Get Micro Credit Service
   • An individual customer's borrowing capacity is determined by his or her 6-month telebirr transaction and telecom usage prior to the date of the mela credit payment service request. The telebirr transactions listed below are used to determine an individual   customer's credit worthiness:

• Purchase airtime or packages.
• Buy goods or service.
• bill Payment by self-service or at agent.
• Utility payment by self-service or at agent.
• Receive Bulk disbursement.
• Receive Remittance.
• Ticket purchase.
• Fundraising payment.
• Cash-in/Cash-out at agent
• Saving
• Send Money
• Telecom usage like Voice, Data and SMS
• Credit Repayment History
  • However, to get mela medaresha micro credit receiving salary via telebirr and a prior agreement with the institution where the individual customer working will be the requirement .

5.  Credit Amount and Fees

• Based on your transaction activity , you can borrow any amount between the minimum and maximum amount permitted.
• Pursuant to Council of Ministers Regulation No. 576/2025, which establishes the Ethiopian Disaster Risk Response Fund, a mandatory contribution of 1% will be deducted from the total credit amount you have requested and transferred to the Ethiopian Disaster Risk Response Fund. The remaining amount of your approved credit will then be disbursed to your telebirr account.
• You should repay your previous credit first to get another credit.
• You can pay your credit partially or fully at a time.
• Credit repayment deadline will be 1 day, 7 days, 30 days, and 50 days from the date of taking the loan, depending on the type of loan.
• For Mela Daily, the minimum credit limit is Br. 100.00, and the maximum is Br. 2,000.00.For Mela Weekly, the minimum credit limit is Br.100.00,0 and the maximum is Br. 5,000.00.For Mela Monthly, the minimum credit limit is Br. 600.00, and the maximum is Br. 15,000.00.For Mela 50 Days, the minimum and maximum credit limit is Br. 30,000.00.
• If you repay your daily credit within the due date, you will be charged a facilitation fee of 1% of the loan amount.
• If you repay your weekly credit within the due date, you will be charged a facilitation fee of 1% of the loan amount on day one and you will be charged a daily fee ranging from 0.35% to 1.2% for the rest of the repayment period depending on your credit limit.
• If you repay your monthly credit within the due date, you will be charged a facilitation fee of 3% of the loan amount on day one. and you will be charged a daily fee ranging from 0.3% to 0.8% for the rest of the repayment period depending on your credit limit.
• If you repay your 50 days of credit within the due date  , you will be charged a facilitation fee of 6% of the loan amount on day one. and you will be charged a daily fee ranging from 0.5% to 0.7% for the rest of the repayment period depending on your credit limit.
• For mela medaresha, the repayment will be installment base (outstanding credit amount will be prorated for repayment period) that will be settled every month.
• A 30% salary Medaresha loan has a three-month repayment period and has a 10% facilitation fee.
• For a two-month Medaresha loan with a nine-months repayment period and has  16% facilitation fee.
• A three-month Medaresha loan with a twelve-month repayment period and has a 20% facilitation fee.
• Early repayment charge will be 3% of the outstanding principal balance for 2 & 3 months mela Medaresha loan.
• The bonus/incentive will not be applicable for telebirr mela 

6. Non-Performing loan collection
   • After due date we will take the outstanding credit amount from your telebirr account and sanduq saving account.
   • If the loan is not repaid when it is overdue, Ethio Telecom and/or  Dashen Bank may, where necessary, collect the debt using any alternative means, including direct debit from individual customer Dashen Bank or any other bank accounts.
   • The individual customer agrees that Ethio telecom and/or Dashan Bank shall have the right to locate the customer’s address using any alternative methods and collect the outstanding debt through out-of-court alternative dispute resolution or debt recovery mechanism
   • The individual customer agrees that if the debt is not paid when it is overdue, Ethio Telecom and/ or Dashen Bank may transfer the individual customer's personal data to a third party (law firm or individual) involved in debt collection.
   • If the debt is not paid through an out-of-court alternative,  Ethio Telecom and/or  Dahen Bank have  full right to take the case to a regular court by themselves or separately through another legal service providing firm or an attorney.
   • A customer with an NPL loan status can use “NPL installment repayment plan” to settle the total loan with different repayment options. The NPL installment repayment plan is subject to a service charge ranging from 0.75% -1% depending on the NPL installment repayment plan.

7. Governing Law

The laws of the Federal Democratic Republic of Ethiopia, the directives of the National Bank of Ethiopia, as well as the relevant working procedures of  Dashen bank and/or  Ethio telecom shall govern these Terms and Conditions.

8. Queries

For any inquiries regarding the telebirr Services, Procedures, Terms and Conditions of the telebirr, can call the telebirr Customer Contact Center (127 ), send a short SMS to 126 or visit the telebirr Social media Pages (https://telehub.ethiotelecom.et/) for more information.

9. Termination

We are  entitled to suspend or terminate this agreement wholly or partially due to your abuse, misuse, or fraud of any of the micro credit saving and micro loan services with or without prior notice to you. Any termination of this contract completely or in part may not affect any accrued rights and obligations of either party.

10. Complaints may be submitted in person, in writing, by mail, fax, email, or telephone. Ethio telecom will take all necessary measures to resolve your complaint within an appropriate timeframe. If you are not satisfied with the response, you may escalate the matter to Dashen Bank and the National Bank of Ethiopia, respectively. If the contracting parties are unable to reach an agreement within 30 calendar days from the date the complaint was first submitted to Ethio telecom, they agree to submit the matter exclusively to a court of competent jurisdiction within Ethiopia.
11. Lien

We shall have a general lien over all your property/assets in its possession in the event that you owe any money to us including but not limited to cash, goods, securities or valuables deposited for safe custody as security, cheques presented, bills and any other movable or immovable property. Where you are indebted to us in circumstances giving us the right to set off, all property held under lien shall be deemed to be held as security for the debt.

12. Set Off

We may, upon notice, combine/consolidate your telebirr Account with any other accounts you hold with us, whether current, loan, savings, deposit, term deposit, joint or any other type and thereafter set off any amount held to your credit against any indebtedness you owe to us. 

13. Disclaimer

Your PIN must be kept confidential and not accessible to anyone other than you. You will be solely responsible for any loss/damage you may incur if you disclose your PIN to a third party or fail to change it regularly, make unauthorized use of your phone, or fail to promptly notify the relevant party and immediate suspend if your mobile phone or SIM card is stolen or lost.