Under the “Buy-Now Pay Later” short-term lending scheme, Dashen Bank offers up to 700,000 birr while upholding Shariah principles.
According to the bank, by enabling customers to make purchases without needing instant cash, this service is anticipated to boost economic activity.
The bank, which was a leader in Ethiopia in providing digital financial schemes, said that it has launched a new IFB Financing service dubbed “Dube Ale-Interest Free Banking” (DubeAle-IFB) in collaboration with EagleLion System Technologies.
Users can utilize this Buy-Now Pay Later scheme to pay for products and services on credit while still abiding by Shariah laws.
In partnership with retailers and traders, DubeAle-IFB provides short-term financing that allows clients to make purchases now and pay for them over the course of three, six, or twelve months, all without incurring interest or profit markups.
Customers may use the service by downloading the “Dube Ale-IFB” application, enrolling, and going to a nearby Dashen Bank branch for account verification, according to CEO of Dashen Bank Asfaw Alemu.
Employed clients who wish to use the service must send in a letter confirming their income and evidence of work from their employer, whether it be a government agency or a commercial company.
Dashen offers two options for making payments: automatically deducting funds from their bank account or using Amole, their mobile banking app. Clients with fixed assets have two options: they can use a bank deposit to secure the borrowing or offer a guarantee from a third party.
DubeAle-IFB has a 700,000 birr maximum spending restriction, and payments must only be done via the app.
Dashen has a track record of innovation, having created the popular Amole payment system. In 2023, the Bank also introduced DubeAle traditional banking.
