Ethio Telecom has launched a new digital lending and device financing programme, “Tila,” in partnership with Awash Bank, expanding the range of credit and savings products available through the telebirr platform.

The service introduces non-collateral micro loans, salary-backed credit, savings products, and smartphone financing to telebirr users. Ethio Telecom said the initiative forms part of a wider strategy to increase access to digital financial services, particularly for low-income customers and businesses with limited access to credit.

Telebirr, which has more than fifty seven million users, has become a major channel for micro-lending since its introduction. Ethio Telecom said more than 31.6 billion birr in digital loans have been disbursed to fifteen million customers in partnership with four banks.

Under the new agreement, Awash Bank will supply more than two billion birr in annual credit for Tila-linked services. Individual borrowers can access up to 16,000 birr in short-term credit, with repayment periods ranging from fifteen to seventy five days, based on their telebirr transaction history.

Employees of institutions that process salaries through telebirr and Awash Bank can borrow up to one million birr, equivalent to six months’ pay, with repayment terms of up to sixteen months.

Micro, small, and medium enterprises using telebirr can obtain non-collateral loans ranging from 50,000 birr to 150,000 birr, depending on transaction volume and tenure. The partnership also includes a savings product that allows customers to deposit funds through telebirr with interest-bearing and non-interest options.

Ethio Telecom and Awash Bank have also introduced smartphone financing, allowing customers to acquire devices through instalments. The companies said the scheme is intended to address the cost barrier that has limited smartphone uptake, particularly in rural areas where financial-service access remains low.

The programme follows a trial period for telebirr-enabled cardless ATM withdrawals at Awash Bank, which recorded more than 92,000 transactions and 97.3 million birr in withdrawals.