Medaresha

1. The Agreement
2. This Agreement sets out the complete Terms and Conditions (hereinafter called "These Terms and Conditions") which shall be applicable to mela service.
3. These terms and conditions, as well as any related amendments or changes, will become effective once the credit customer has read and accepted them (by clicking on the option to accept).
4. Definitions

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

• “telebirr mela service” is a method of lending small sum of e-money to individuals and merchants/agents to start or expand a small business.
• “telebirr mela Medaresha Credit Service” means a credit service provided by Ethio Telecom's telebirr service by Dashan Bank to employees of private and public institutions whose monthly salaries are paid through telebirr service.
• "Credit Service" means the credit service provided to individual customers by Dashan Bank through Ethio Telecom's telebirr service in accordance with the terms and conditions set forth below.
• “Individual customer” means the person in whose name the telebirr mela Service with telebirr account is existing.
• “E-Money” means the electronic monetary value depicted in customers telebirr Account representing an equal amount of cash.
• “Transaction Fees” includes the Facilitation Fee, Penalty and any other fees and charges payable for the use of the telebirr Mela Service.
• “Facilitation fee” means the amount of fee paid by customers for using telebirr mela service.
• “Penalty fee” means the amount of fee paid by customers if they repay after the due date.
• “Due date” means the time marked as on time (active credit period) that includes 1, 7 and 30 days from the date of credit issued.
• “Overdue date” means the time marked as the credit is overdue.
• “Bad debit” means the time marked as bad debit if customers do not repay the outstanding amount within 90 days from the day of credit issued.

3. Acceptance of the Terms and Conditions

• Before applying to use telebirr mela service you should carefully read and understand these Terms and Conditions which will govern the use and operation of Micro Credit Account.
• If you do not agree with these Terms and Conditions, please click “Cancel” on the Menu.
• You will be deemed to have read, understood, and accepted these Terms and Conditions:
• Upon clicking on the “Agree” 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 telebirr Mela Service.
• The terms and conditions may be modified or changed at any time by Ethio telecom and Dashan Bank and will be binding on the customer from the date they are published on the telebirr App, portal, or website.
• You acknowledge and accept the telebirr mela service only electronically and you agree to do business with Ethio telecom and to operate the telebirr mela service only by electronic means via telebirr system.
• The customer agrees to use the credit for legitimate purposes.

4. Activation for telebirr mela Service

• To activate telebirr Mela service with Ethio telecom and Dashen Bank, you must be at least:
  • 18-year-old and Above
  • Have an Ethio telecom active SIM card
  • Active user of telebirr and Ethio telecom products such as Data/Voice/SMS
  • Network age three month on telebirr
  • You can use USSD (*127#) or telebirr app to activate
  • You will receive a notification for successful activation

5. Eligibility Criteria to Get telebirr mela Service

• A customer's borrowing capacity is determined by his or her 6-month telebirr financial activity and telecom usage prior to the date of the credit payment service request. The telebirr transactions listed below are used to determine a customer's creditworthiness.
  • Self (for own & others)-airtime & packages purchase.
  • Airtime recharge and package purchase via agent,
  • Buy goods/service,
  • Self (for own & others)-Pay bill,
  • Pay bill via agent
  • Self-Utility payment (for own & others)
  • Utility payment via agent
  • Bulk disbursement (salary, SafetyNet …)
  • Receive Remittance
  • Ticket purchase
  • Fundraising payment
  • Micro Saving service
  • Telecom usage like Voice, Data and SMS
• But for mela medaresha credit, receiving salary via telebirr will be enough.
• To be eligible, individual customers must use at least one transaction of telebirr service on top of telecom service usage.

6. Credit Amount and Fees

• You can borrow any amount between the minimum and maximum amount permitted.
• You will get the requested credit amount and it will be credited to your main telebirr account (customer e-money account).
• You should repay your previous credit first to get another credit
• You can pay your credit partially or fully
• Credit repayment deadline will be 1 day, 7 days and 30 days from the date of taking the loan, depending on the type of loan.
• If you repay your daily credit within the due date, you will be charged 1% of the loan amount.
• If you repay your weekly credit within the due date, you will be charged a facilitation fee of 1% on day one and you will be charged a daily fee ranging from 0.35% to 1.2% for the rest of 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% on day one and you will be charged a daily fee ranging from 0.3% to 1.2% for the rest of repayment period depending on your credit limit.
• For mela medaresha, repayment will be installment base (outstanding credit amount will be prorated for 3 months) that will be settled every month for 3 consecutive months. If you repay your credit every month for 3 consecutive months, you will be charged with 10% facilitation fee.
• After due date, you will be charged penalty fee of 0.5% per day on outstanding credit amount up on repayment. But for mela daily, you will be charged penalty fee of 2% per day on outstanding credit amount up on repayment.
• After the due date, the lender will take the outstanding credit amount from your e-money account automatically if you do not repay on time.
• The bonus/incentive will not be applicable for telebirr mela repayment.
• Ethio telecom, in collaboration with Dashen Bank, offers this credit service. Dashen Bank owns and controls the money used to provide credit services. In the event of a defaulted or overdue loan, the bank has full legal authority to sue in a regular court. He is free to pursue alternatives to litigation including deducted the bad debt amount from your Dashen bank saving account.