Digital Loans in Ethiopia Are No Longer Micro!

Over the past three years, over a dozen digital lending platforms have entered the market in Ethiopia. However, their portfolios have largely remained unchanged, with only a few exceptions. Credit caps have stagnated at the levels set during their initial launch, and most digital lending products are tailored for personal use or salaried employees. Now, a bold shift is underway led by a new bank that emerged from a micro-finance institution. Last week, Siinqee Bank and Ethio telecom launched a range of digital financial services through telebirr, offering personal loans of up to 30,000 birr, non-collateral business loans of up to 130,000 birr, and collateral-backed loans reaching as high as 2 million birr. In addition, the device financing service, which includes the provision of SIM cards alongside smartphone financing, is one of the new offerings launched by the two partners.