Terms and Conditions

1. The Agreement

This Agreement sets out the complete Terms and Conditions (hereinafter called “These Terms and Conditions”) which shall be applicable to payday loan. These terms and conditions, as well as any related amendments or changes, will become effective once the customer has read and accepted them (by clicking on the option to accept).

2. Definitions

• Digaf Micro Credit Provider S.C.: A regulated financial institution licensed by the National Bank of Ethiopia.
• National Bank of Ethiopia (NBE): A supervising authority.
• Payday Loan: A loan provided by Digaf Micro Credit Provider S.C. to employees of private and public institutions.
• Customer: Any individual who subscribes to the payday loan.
• You or your: The individual customer and includes the personal representatives of the individual.
• We, our, and us: Digaf Micro Credit Provider S.C.
• Service Charge: The fee paid by customers for processing the loan.
• Penalty Fee: The fee charged if the customer fails to meet payment commitments on time.
• Due Date: The time marked for on-time repayment.
• Words importing the singular meaning where the context so admits include the plural meaning and vice versa.
• The word individual shall include both the masculine and the feminine gender.

3. Acceptance of the Terms and Conditions

Before applying to use Payday loan you should carefully read and understand these Terms and Conditions which will govern the use and operation of payday loan. If you do not agree with these Terms and Conditions, please click “Cancel” on the Menu. You will be deemed to have read, understood, and accepted these Terms and Conditions:

• Upon clicking on the “Agree” option on the Menu requesting you to confirm that you have read, understood, and agreed to abide with these Terms and Conditions; and/or by using or continuing to use and operate payday loan.
• You acknowledge and accept the payday electronically as alternative and you agree to do business with Digaf and to operate the payday loan only by electronic means.
• The terms and conditions may be modified or changed at any time by Digaf and will be binding on the customer from the date they are published on the Digaf App, portal, or website.
• From the time it is accepted electronically, these terms and conditions become a legally binding agreement between you and us. You are not allowed to transfer any of your rights or obligations under this agreement to anyone else.
• The customer agrees to use the credit for legitimate purposes.

4. Activation for Payday Loan

• Able to read, understood and accept these terms and conditions.
• 18-year-old and above.
• Download Digaf App and register on www.digafmfi.et.
• To activate the Payday loan, customers shall use USSD *6575# or Digaf app.

5. Eligibility Criteria to Get Payday Loan

• Legal and Employee Identification Card
• Letter from employer company
• Three Months bank transaction report (statement)
• Agreement to the terms and conditions

However, after one time registration a customer is considered as a potential customer.

6. Credit Amount and Fees

You can borrow any amount between the minimum and maximum amount permitted. You will get the requested credit amount, if you are eligible. You should repay your previous credit first to get another credit. You must pay your credit fully. After the due date, you will be charged a penalty fee of 2% upon repayment. Credit repayment due date will be payday of your salary but not extend above 30 days. Maximum loan amount 10,000 birr. For this loan no interest rate. Life insurance is included under service charge.

• 500-1,000 birr: 75 birr service charge
• 1,001-2,500 birr: 200 birr service charge
• 2,501-5,000 birr: 300 birr service charge
• 5,000-10,000 birr: 575 birr service charge

Digaf offers this credit loan, controls the money used to provide credit loans. In the event of overdue loan, we have full legal authority to sue in a regular court. We are free to pursue alternatives to litigation. Digaf has the right to collect the Nonperforming Loan (NPL) from customers’ bank account and is free to pursue alternatives to litigation.

7. Governing Law

The laws of the Federal Democratic Republic of Ethiopia, the directives of the National Bank of Ethiopia, as well as the relevant procedures of the Micro Finance shall govern these Terms and Conditions.

8. Queries

For any question related to loans, process, terms & conditions of individual Payday loan, you can get through Digaf Customer contact Centre (by dialing 6575).

9. Termination

We shall be entitled to suspend or terminate this agreement wholly or partially due to your abuse, misuse, or fraud of any of the micro loans with or without prior notice to you. Any termination of this contract in complete or in part may not affect any accrued rights and obligations of either party.

10. Complaints

Complaints may be made in person, in writing, by post, email or by telephone. Digaf will take all measures within its means to resolve your complaints within a reasonable time.

11. Set-Off

We may, upon notice, combine/consolidate your Digaf Account with any of your other accounts held in us, whether current, loan, savings, deposit, term deposit, joint or any other type and thereafter set off any amount held to your credit against any indebtedness you owe to us.

12. Disclaimer

Your PIN must be kept secret and not accessible to anyone other than you. The consequences of disclosing the PIN, unauthorized use of the Digaf account, cell phone, failing to report loss or theft, or not regularly changing your pin are solely your responsibility.