Awash Digital Farmer Loan – Terms and Conditions
- Bank : Awash Bank
- You / Your / Customer : The farmer applying for the loan
- Loan: A micro-loan of up to 10,000 ETB provided via a digital voucher
- Voucher : A unique code sent by SMS, used to buy agricultural inputs from approved suppliers
- Voucher Expiration : The date after which unused voucher amounts are canceled
- Repayment Schedule : A repayment plan generated after loan activation
- Interest: Daily cost applied on unpaid loan amounts
- Late Fee: Extra daily charges for late repayment
- System : Awash Bank’s digital loan and repayment platform
- Cooperative: Approved group distributing farm inputs against vouchers
- You must read and agree to these terms before using the service.
- By applying for the loan or redeeming the voucher, you accept these terms.
- If you disagree with any part, do not proceed.
- Continued use of the service means continued acceptance.
- Once approved, you will get a voucher code by SMS.
- The voucher is used only at selected merchants for buying farming inputs.
- You can use it all at once or partially, until the expiry date.
- Any unused value after expiry will be canceled and not available.
- Loan Amount: [Min Amount] – [Max Amount] (Max = 10,000 ETB)
- Duration : 12 months
- Repayment: Every 6 months (2 times a year)
- Disbursement: As a voucher (not cash)
- Activation : Loan starts when you first redeem the voucher
Interest
- [INTEREST RATE%] Charged daily on unpaid balance
- Starts the day you redeem the voucher
Late Fees
- [LATE FEE RATE%] Daily fee on overdue amounts after repayment date
Processing Fee
- [PROCESSING FEE %] One-time fee deducted when the loan is disbursed
- You can repay anytime—even before using the full voucher from your registered account.
- Payments go in this order:
- Late Fees
- Interest
- Loan Amount (Principal)
- On the due date :
- System takes money from your default Awash account
- If that’s not enough, it checks your other linked accounts
- If still insufficient, partial deductions are made and late fees apply until full repayment
- Fully Used: System deducts full repayment from your registered account. If funds are low, partial deductions and late fees apply.
- Partially Used: Unused voucher value becomes cash in your account during token expiration not before that, then used for repayment.
- Not Used (Expired): No loan is activated, and the voucher is canceled.
- Provide correct personal and banking info
- Keep enough money in your account for repayments
- Use the voucher only at approved merchants
- Report any fraud or unauthorized use
- Protect your account and inform the Bank if compromised
- The Bank may suspend your loan for misuse or violations
- The Bank can cancel unused vouchers
- The Bank is not responsible for delays due to tech issues or other uncontrollable events
- You agree to receive updates via SMS, mobile app, or USSD
- Keep your contact info updated
- Digital signatures via the platform are legally binding like handwritten ones.
- Your data will be used only for managing your loan and as per the Bank’s privacy policy
- Shared only with trusted partners involved for loan processing and credit risk management
- The Bank can stop your loan service access if you break the rules or for reasons of system security.
- Your loan ends after full repayment
