Cooperative Bank of Oromia, said it has disbursed more than 40 billion birr through its digital, collateral-free loan service over the past three years, Sheger FM reported.

The bank said the service, branded “Michu” and launched just over three years ago, has reached more than 2.44 million accounts. Women represent roughly 80 percent of borrowers.

The platform provides loans without collateral, using an AI-based system to assess creditworthiness based on transaction history and repayment behaviour. Borrowing limits increase over time for customers with consistent repayment records.

Under the scheme, informal and daily traders can access loans between 2,000 and 15,000 birr for up to one week. Licensed businesses are eligible for loans of 50,000 to 100,000 birr for a one-month term, while selected borrowers may receive up to 300,000 birr with extended repayment periods. Tailored options are also offered for women entrepreneurs.

Founded in 2005 with roots in the cooperative movement, Coopbank has expanded across Ethiopia and invested in digital platforms to increase access to financial services.