The Tala loan app has revolutionized access to credit in Kenya, providing a lifeline for individuals and small businesses needing quick, unsecured loans. As one of the pioneers of digital lending, Tala offers a simple, user-friendly platform that disburses loans directly to your mobile wallet within minutes. Here’s an in-depth guide on how Tala works, its features, and how to maximize your chances of approval.
What is Tala, and How Does It Work?
Tala is a mobile-based lending platform that provides unsecured personal loans. Licensed under Inventure Mobile Limited and regulated by the Central Bank of Kenya (CBK), Tala is a legitimate and trusted lender in Kenya’s financial ecosystem.
Using advanced machine learning algorithms, Tala evaluates borrowers’ creditworthiness by analyzing data collected during the app’s registration process. Loans are disbursed via M-Pesa, making the process seamless and convenient for borrowers across the country.
Key Features of Tala Loans
| Feature | Details |
|---|---|
| Loan Type | Unsecured Personal Loan |
| Loan Term | 61 Days |
| Loan Amount Range | KSh 500 – KSh 50,000 |
| Interest Rate | 0.3% – 0.6% daily (15% monthly) |
| Maximum APR | 182.5% |
| Service Fees | 0.5% – 30.50% |
| Late Payment Fee | 8% one-time fee |
| Disbursement Method | M-Pesa |
| USSD Code | *846# |
| Customer Service Number | 0800 720 597 (Toll-Free) |
| Eligibility Criteria | Kenyan ID, Android smartphone, M-Pesa line |
How to Apply for a Tala Loan
1. Using the Tala App
To access Tala loans through the app, follow these steps:
- Download the App: Available on Google Play Store.
- Register Your Account: Provide your ID details and personal information.
- Answer Questions: Respond honestly to a series of questions about your financial habits and income.
- Select Loan Amount: Choose an amount within your initial limit, typically capped at KSh 30,000 for first-time borrowers.
- Receive Funds: Approved loans are sent directly to your M-Pesa account.
2. Using USSD Code
For borrowers without smartphones, Tala offers a USSD option:
- Dial *846#.
- Follow the prompts to register and apply for a loan.
- Enter your desired loan amount and confirm with your M-Pesa PIN.
3. Loan Application Tips
- Provide accurate personal and financial information.
- Ensure your M-Pesa account is active and matches the registered phone number.
- Maintain a good repayment record to qualify for higher limits and lower fees.
Tala’s Loan Fees and Charges
Tala loans are transparent about their costs. Below is a breakdown of fees and interest rates:
- Interest Rates: Daily rates range from 0.3% to 0.6%, with a monthly cap of 15%.
- Service Fee: Calculated dynamically, starting at 5% for most borrowers.
- Late Payment Penalty: 8% of the overdue amount.
- Excise Tax: 20% on interest fees.
Example Calculation:
For a KSh 4,000 loan repaid in 60 days:
- Interest: KSh 720 (18%)
- Excise Tax: KSh 144 (20% of interest)
- Total Payment: KSh 4,864
Eligibility Criteria
To qualify for a Tala loan, applicants must meet the following requirements:
- Own an Android smartphone (iOS not supported).
- Have a valid Kenyan national ID.
- Be an active M-Pesa user.
- Be at least 18 years old.
Loan Approval and Limit Increases
Tala assesses creditworthiness through user data, including spending habits and repayment history. Timely repayments lead to increased loan limits, with borrowers reaching a maximum of KSh 50,000 over time.
Common Application Errors:
- “There is a problem sending your loan”: This message indicates further review of your application. Avoid reapplying and wait for Tala to process your request.
How to Cancel a Tala Loan
If you need to cancel your application, simply do not finalize it. Unclaimed loans are automatically canceled after seven days.
Maximizing Your Chances of Approval
- Keep Your Information Accurate: Inaccurate details may lead to rejection.
- Repay Loans Promptly: Timely payments enhance your credit score and eligibility for larger amounts.
- Use Tala Regularly: Active users with good repayment records often receive better terms.
Security and Legitimacy
Tala employs robust security measures to protect user data. As a licensed lender, it adheres to CBK regulations, ensuring transparency and accountability.
Why Choose Tala?
- Convenience: Loans are accessible 24/7 through your phone.
- Speed: Funds are disbursed within minutes of approval.
- Flexibility: Borrowers can repay early without penalties.
Customer Support
Tala provides several customer support options:
- Call: 0800 720 597 (Toll-Free)
- SMS: 21991
- Email: hellokenya@talamobile.com
Tala is a game-changer in Kenya’s financial landscape, offering quick, unsecured loans for various needs. Whether you’re covering unexpected expenses, starting a business, or managing cash flow, Tala provides a reliable solution. However, borrowers should be mindful of the high interest rates and ensure timely repayment to avoid penalties and build a positive credit history.
