Dashen Bank Launches “DubeAle”: A New Interest-Free Shariah Compliant Financing Service

Addis Ababa – 16 Aug. 2024 – Dashen Bank, in partnership with EagleLion System Technology, has unveiled a new IFB Financing service called “Dube Ale-Interest Free Banking” (DubeAle-IFB). This Buy-Now Pay Later scheme allows users to purchase goods and services on credit while adhering to Shariah principles.

DubeAle-IFB offers short-term financing in collaboration with merchants and traders, enabling customers to make purchases and pay later over a period of three, six, or twelve months without interest and profit mark-up as applicable.

According to Ato Tibebu Solomon, delegate of the CEO Chief Operations Officer, customers can 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. Once verified, they can make credit purchases from participating physical and online stores. A system has been developed to assist customers in providing their information, with professional guidance, to determine their financing limit based on income.

To utilize the service, employed customers must submit a letter from their employer, whether in the private or government sector, detailing their income and proof of employment. 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 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 payments made exclusively through the application. This service is expected to stimulate economic activity by allowing consumers to purchase products and services without the need for immediate cash.

Dashen Bank has a history of innovation, having introduced the widely used Amole payment platform. The Bank also launched DubeAle conventional banking in 2023.