Overdraft Loan
Access short-term mobile credit for bill payments, airtime, and essential transactions with clear terms and structured repayment options.
Access short-term mobile credit for bill payments, airtime, and essential transactions with clear terms and structured repayment options.
This document outlines the Terms and Conditions for the Overdraft loan by CBE Mobile Banking product, designed by the Commercial Bank of Ethiopia (CBE). The product is aimed at providing a convenient credit facility to CBE account holders having Mobile banking user, allowing them to access short-term funds to complete transactions listed below:
By registering for the Overdraft facility, you confirm that you have read, understood, and agreed to be bound by these Terms and Conditions. Your acceptance is confirmed by selecting the 'Accept' option on the CBE USSD Menu or by using the Overdraft facility on CBE Mobile Application. CBE may amend these Terms and Conditions from time to time, and notifications will be communicated via SMS, the CBE website, or through CBE branches as per Clause 15.
To be eligible for the Overdraft Loan facility, you must be at least 18 years old, and an active CBE Mobile Banking user and customer account duration of 6 months and shall fulfill the KYC requirement of the bank for the digital loan. CBE reserves the right to approve or decline applications at its sole discretion.
You hereby expressly consent and authorize us to disclose, receive, record or utilize your information relating to your loan Account to/from Credit Reference Unit/Department as required by any regulatory body (NBE), court of law, mandated government organ and the bank.
The Overdraft Limit is determined by CBE based on the customer’s Credit Score, calculated using transaction history, repayment behavior, and other relevant factors. The Overdraft can be utilized for transactions on the CBE platform such as paying bills, and purchasing airtime as per Clause 1. The Overdraft facility cannot be transferred to other bank accounts or credited to any bank account
A penalty of 0.2% per day in addition to the daily fees will be charged on overdue amounts beyond the Facility Term.
In accordance with Council of Ministers Regulation No. 576/2025 regarding the Ethiopian Disaster Risk Response Fund, the Commercial Bank of Ethiopia is legally required to collect a mandatory contribution of 1% from the total credit amount requested. This 1% levy will be debited directly from the Borrower’s account at the time of loan disbursement and subsequently transferred to the Ethiopian Disaster Risk Response Fund.
If repayment is not made within 90 days, the Overdraft loan amount will be classified as a Non-Performing Loan (NPL).
The bank can change an applicable interest rate following the bank’s pricing policy change and/or introduce new directives by NBE.
| Risk Based Daily Fee | 7 Day Facilitation Fee | 14 Day Facilitation Fee | 30 Day Facilitation Fee | Penalty Fees Daily (Additional) |
|---|---|---|---|---|
| 0.2% - 0.60% for 7 days loan and 0.10% - 0.40% for 14 & 30 days Loan (basis risk score of the customer) | 1.00% | 1.50% | 3.00% | 0.20% |
The Overdraft facility must be repaid within the tenure 7, 14 or 30 days basis the selection made by the customer. In addition, for 7 days & 14 days tenure customers have two (7 days each) extension options. These options allow customer to choose an extended repayment period during the loan application process. The daily fee will be applied for each extended days as per clause 7. Partial or full repayments can be made during the Facility Term. Repayment must be conducted by the customer mobile banking either mobile application or the bank USSD. CBE reserves the right to automatically deduct the outstanding amount from your CBE accounts and forfeit or confiscated any other receivables which are transmitted through CBE for overdue loans. If your accounts are insufficient to cover the loan, an amount equivalent to the outstanding loan will be locked in your bank account until loan fully settled. Customers’ loans information will be reported to NBE including NPL.
All repayments are inclusive of any taxes payable by you. You hereby irrevocably grant us permission to revise the Fees upon any changes to taxes applicable.
Without prejudice to any other clause in these terms and conditions, all notices concerning the Service may be sent via SMS to the mobile phone number (MSISDN) associated with your bank Account and shall be deemed received even if we do not receive a delivery failure notice.
The Bank shall neither be responsible for any errors or failures caused by any malfunction of your Equipment, and nor shall the Bank be responsible for any virus or related problems that may be associated with the use of the Services, and the Equipment.
Events of Default include failure to repay the Overdraft within the Facility Term, providing false information, or breaching these Terms Consequences include suspension of access, reporting to Credit Reference unit, and legal action for debt recovery.
Customers have the right to receive detailed statements/E-receipt/SMS notification and can contact CBE Customer Care/contact for any queries. Statement is obtained in the customer mobile application without any additional fee. Customers are responsible for maintaining the confidentiality of their CBE Mobile Banking PIN and ensuring timely repayment. The bank is not responsible to the damage incurred by the customer due to transfer of any information, data, security code, password … etc. to 3rd party who is not authorized by the bank.
The Bank shall be entitled to suspend or terminate this agreement wholly or partially with or without prior notice to you. It might happen if you/due to your/ abuse or misuse or fraud of any of the loan services and fail to conduct repayment timely. Any termination of this contract in whole or in part may not affect any accrued rights and obligations of either party.
The Bank may vary or amend these terms and conditions including loan amount and fees, from time to time having regard to the prevailing rules and regulations of the National Bank of Ethiopia and the policies of the Bank. The Amendment shall be posted on the Bank’s website or notice board before implementation. The continued use of your CBE Account Loan Services constitutes your agreement to be bound by the terms of any such amendment or variation.
The bank will take reasonable measures to protect customer data. Customers authorize the bank to share their information with Credit Reference Bureaus, Debt Collection Agencies, and Government Authorities as required by law.
This Agreement is governed by the Laws of the Federal Democratic Republic of Ethiopia, regulations of the National Bank of Ethiopia (NBE) & Procedure of Commercial bank of Ethiopia (CBE). Any disputes arising out of or in connection with this Agreement that are not resolved as per Clause 12 shall be referred to and resolved by the Federal Court of Ethiopia.
For any questions related to services, process, terms & conditions of loan product, you can get through CBE Customer contact Centre (by dialing 951).
Complaints may be made in person, in writing, email, or by telephone. The Bank will take all measures within its means to resolve your complaints within a reasonable time. If You are dissatisfied with the response, you can refer the matter to the National Bank of Ethiopia.
This Terms and Conditions shall be electronically accepted and shall be a legally binding agreement between you and the Bank from the date of acceptance. By clicking and selecting the button “Accept”, you have read and accepted to be bound by the above Terms and Conditions. If you do not agree with these Terms and conditions, please click and select “Decline” on the CBE USSD Menu or CBE Mobile Banking Application. This Agreement and any rights or liabilities accruing thereunder may not be assigned by you to any other person.
The Bank shall have a general lien over all your property/assets in its possession in the event that you owe any money to the Bank, including but not limited to cash, goods, securities, or valuables deposited for safe custody as security, checks presented, bills, and any other movable or immovable property. Where you are indebted to the Bank in circumstances giving the Bank a right of set off, all property held under lien shall be deemed to be held as security for the debt.
The Bank may, upon notice, combine/consolidate your CBE Account with any of your other accounts held in the Bank, 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 the Bank.
In consideration of the Bank complying with your instructions or Requests in relation the CBE Account/Mobile Banking User, you undertake to indemnify us and hold us harmless against any loss, charge, damage, expense, fee or claim which - we may suffer or incur or sustain thereby and you absolve us from all liability for loss or damage which you may sustain from us acting on your instructions or requests or in accordance with these Terms and Conditions.
The indemnity in clause above shall also cover All demands, claims, actions, losses and damages of whatever nature which may be brought against any of us or which we may suffer or incur arising from its acting or not acting on any Request or arising from the malfunction or failure or unavailability of any hardware, software, or equipment, the loss or destruction of any data, power failures, corruption of storage media, natural phenomena, riots, acts of vandalism, sabotage, terrorism, any other event beyond the our control, interruption or distortion of communication links or arising from reliance on any person or any incorrect, illegible, incomplete or inaccurate information or data contained in any Request received by us.
The Indemnity in Clause above shall also cover any loss or damage that may arise from your use, misuse, abuse or possession of any third party software, including without limitation, any operating system, browser software or any other software packages or programs, any unauthorized access to your CBE Account or any breach of security or any destruction or accessing of your data or any destruction or theft of or damage to any of your Equipment, any loss or damage occasioned by the failure by you to adhere to these Terms and Conditions and/or by supplying of incorrect information or loss or damage occasioned by the failure or unavailability of third party facilities or systems or the inability of a third party to process a transaction or any loss which may be incurred by us as a consequence of any breach by these Terms and Conditions by you.
You shall keep your PIN confidential and not accessible to anyone except you. You shall be solely responsible and liable for the consequence arising out of the disclosure of the PIN or unauthorized use of the CBE Mobile Banking User/ account or cell phone or SIM card or non-reporting of loss or theft or not changing your pin regularly.
Need help with the Overdraft facility?
Call 951 or visit your nearest CBE branch.