Ethio Telecom, Awash Bank launch non-collateral digital credit and device financing service

Ethio Telecom has partnered with Awash Bank to launch Tila, a new digital credit, savings and device-financing service available through the operator’s Telebirr mobile money platform.

The service uses AI-driven credit scoring to issue non-collateral loans to individuals, salaried workers and MSMEs. Awash Bank has allocated more than ETB2 billion (US$13 million) in annual credit for the programme. Personal micro-loans range up to 16,000 ETB, while MSMEs can access business loans of up to 150,000 ETB with repayment periods of one to six months. Employees paid through Telebirr or Awash Bank can apply for salary-based loans of up to ETB1 million.

A device financing component will allow customers to acquire smartphones through instalment plans, targeting users who cannot afford upfront handset costs. Ethio Telecom said the scheme is intended to support wider digital and financial inclusion, particularly outside major urban centres.

Telebirr has become a key revenue driver for the operator, with more than 57 million users. Ethio Telecom reports that the platform has enabled over ETB31.6 billion in digital loans and more than ETB30.3 billion in savings since launch.

The partners also noted early uptake of Telebirr-based cardless ATM withdrawals via Awash Bank’s network, with over 92,000 transactions completed during the pilot phase.

Tila is part of Ethio telecom’s broader strategy to expand its digital finance offerings and increase smartphone access across Ethiopia.

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