During its initial years of operation, Tala loan app gave a maximum of Ksh 50000 in mobile loans but the app has since revised its credit limits to a minimum of Ksh500 for first-time borrowers to Ksh30000 for borrowers with a good repayment record.
As you may have noticed with other mobile loan apps, Tala app does not require security for your loan. Conventional financial institutions, however, require you to provide your car logbook or title deed before you can be given the loan.
What is Tala loan app Kenya?
Tala loan app is by far the most popular loan app in Kenya mostly because it was the first mobile loan app to be developed in Kenya.
Formerly Known as Mkopo Rahisi, Tala loan app has grown in leaps and bounds to be the giant it is today. Tala loan app is owned by a finance company based in California called Inventure.
Tala loan app builds on the trust of the borrowers and the more you pay your loans faithfully, the more you qualify for bigger loan limits.
What are Tala app interest Rates?
Unlike other mobile loan apps, Tala claims that they do not charge their borrowers an interest. They instead charge a service charge on all their loans.
The service charge, however, changes depending on the repayment duration that you choose.
For example, a 30-day loan will attract a service charge of 15% while a 21-day loan will attract an 11% service charge.
How Long Does Tala Take to Approve a Loan?
According to Tala, the app should be able to give you a decision in 5 minutes after downloading it.
The app analyzes important information from your phone and decides whether you qualify for a loan or not. The decision should be met in not more than 5 minutes.
Borrowers will be informed about the status of their loan through the app. Qualified borrowers will be given loan limits while declined applications will be explained in the app
Tala Philippines comes up with a loan decision in less than 5 minutes. Prospective borrowers are informed through the app itself whether they’re approved or denied for a Tala Loan.
How much can Tala Kenya give me?
For a start, Tala lends a minimum of Ksh 500. From there, borrowers can grow their loan limit to a maximum of Ksh 30000 depending on their payment behavior.
To qualify for higher loan limits, you should pay your loans on time and in full always. Within no time, your credit limit will increase significantly and you will be able to take meaningful loans.
How to get started with Tala loan App
Getting started with Tala Loan app for the first time is not a walk in the park. They ask you a series of questions that will ultimately help them decide your loan limit.
To help them decide your loan limit, Tala loan app also scans important information on your phone ones installed.
They scan your contact list, your M-Pesa transactions along with other patterns on how you pay loans from other applications.
Ones you install the app on your mobile phone, Tala requires you to give detailed and reliable data which will include:
- your income level
- employment status
- marriage status
This data is analyzed to predict the likelihood of you repaying your Tala loan.
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While this process may be tedious at first, ones you successfully create an account you will never have to go through the same process again.
After your data has been analyzed, Tala determines whether you qualify for a loan with them.
How to Download Tala Loan App
Before you download the App from Google Play store, ensure that you have a registered Safaricom line, an Android phone running on the 2.3.3 OS version or higher.
- If you already meet these requirements, head to Google Play store and download the application
- Install the Tala app on your phone and open it
- Tala will require you to link the app to your active facebook page.
- Make sure you provide correct information that is required by the application like your phone number along with personal information.
- Your loan limit solely depends on the feedback and data that you provide while opening your account with Tala loan app.
- After providing all the required information faithfully, you can now relax and wait for the App to determine whether you qualify for a loan.
- Log in to your account after some time and confirm whether you have qualified for a loan and how much.
How to repay your Tala loan
You have to make sure that you pay your loans faithfully so as to qualify for bigger loan limits in the future. Still, repaying your loans keeps you in the good books of CRB.
There is only one way of repaying your Tala loan and that is through the Tala Paybill Number.
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While repaying your Tala loan, use this Paybill number
Paybill NO: 851900
Account Number: Your Mobile number
Amount: Enter the loan amount to repay
Step By Step Guide to repaying your Tala loan
- Open your M-Pesa menu
- Go to lipa na Mpesa
- Choose the Paybill Option
- Enter Paybill number 851900
- Use your Phone number as the account number
- Enter the amount of loan to repay
- Enter your M-Pesa pin and finish the process
- NB (M-Pesa charges apply for this transaction)
You will receive a message from M-Pesa confirming that you have sent money to Inventure Mobile Kenya.
Thereafter, you will receive a message from Inventure Mobile Kenya confirming the repayment of your loan.
Advantages of Tala loans
In a time when the economy is really tough, unsecured and instant loans have come in handy to the Kenyan population. Here are some of the advantages of Tala loans:
- If you qualify for a loan from Tala, their disbursement is fast and you can apply for the loan at any time of the day or night. This makes it ideal for when you need money during emergencies.
- Tala offers ample time to repay your loan
- Tala loan app is lenient with its borrowers and gives a grace period of 60 days for defaulters. This gives borrowers more time to repay the loan before they get blacklisted.
- Tala notifies borrowers systematically on the amount they should pay and when they should pay.
Disadvantages of Tala loans
- Although Tala claims that they do not charge interest on their loans, their service charge seems to be on the higher side compared to other loan apps that charge interest on their loans.
- It is difficult to determine your interest rate since Tala has varying service fees depending on the loan amount and the repayment period.
- Loan defaulters are blacklisted on CRB as required by section 18 of the CRB regulations act of 2013.
How to Contact Tala
There are various ways of contacting Tala for queries or feedback. Some of the channels of communication provided by Tala include;
- Facebook: Kenyans can contact Tala through their official Facebook Page
- Email: Kenyans can write to email@example.com
- Through the App: Tala loan app provides a chat platform on the app where you can chat with officials from Tala
- Tala customers can now send SMS to 21991 for help
- Kenyans can also send messages on Tala twitter handle
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