ADDIS ABABA– Dashen Bank, in collaboration with EagleLion System Technology, has introduced a pioneering Interest-Free Banking (IFB) service called “Dube Ale-Interest Free Banking” (DubeAle-IFB).
This innovative Buy-Now Pay Later scheme allows customers to purchase goods and services on credit while strictly adhering to Shariah principles.
DubeAle-IFB offers short-term financing through partnerships with merchants and traders, enabling customers to make purchases and repay the amount over three, six, or twelve months without any interest or profit mark-up.
According to Dashen Bank CEO Asfaw Alemu, customers can easily access the service by downloading the “Dube Ale-IFB” application from the Play Store, registering, and visiting a nearby Dashen Bank branch for account verification.
After verification, they can make credit purchases from participating physical and online stores. The system includes professional guidance to help customers determine their financing limit based on their income.
To use the service, employed customers need to submit a letter from their employer, confirming their income and employment status. Repayment can be made via Amole, Dashen Bank’s mobile banking platform or through automatic deductions from their bank account. Customers with fixed assets can also provide a third-party guarantee or secure the financing with a bank deposit.
The maximum spending limit for DubeAle-IFB is set at Birr 700,000 with all payments processed exclusively through the application. This service is anticipated to boost economic activity by allowing consumers to purchase products and services without the need for immediate cash.
Dashen Bank previously launched the popular Amole payment platform and introduced the DubeAle conventional banking service in 2023.
BY STAFF REPORTER
The Ethiopian Herald August 18/2024
