Hijra Bank, one of four fully Sharia-compliant banks in Ethiopia, launched an interest-free digital lending platform over the weekend. While the mobile money service, branded as HalalPay, was officially unveiled at a ceremony held at the Hyatt Regency Hotel last Saturday, it has already onboarded 120,000 users and over 700 agents.
Developed by Tech Horizons over three months, the app currently offers loans of up to 150,000 birr with future limits set to be modified according to users’ credit scores. Hassan Mohammed, vice president at Hijra Bank, states that users must first submit the necessary documents before pairing up with an account holder that serves as collateral to access the credit service.
“Instant transfers are immediately made after the account holder confirms,” he told Shega.
Besides Islamic financing options, HalalPay also includes cash in-cash out, money transfers, airtime purchases, as well as payments for goods and services. The platform is also integrated with Hijra’s core banking services like Murabha.
Dawit Keno, President of the two-year-old bank, highlighted the comprehensive set of tools available in the app offer financing options to a traditionally excluded population segment. He recalled experiencing constant demand from local communities for an interest-free alternative in the digital lending space.
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