Are you looking for a loan to kick start, boost your business, or pay your bills? Tala is the best finance app that provides credit at your fingertips, whenever and wherever. You can get instant loans with low fees and easy repayment schedules.
It is one of the best lending apps that has helped many businesses and people meet their daily expenses. However, many people don’t understand this reliable app’s basics, terms, and conditions. Therefore, before you interact with the app, it is essential to have some insight into the Tala Loan App, and this review highlights some essential basics, facts, and procedures to make it easy to navigate in-app.
How does the Tala Loan App work?
You have to first download the application from Google Play Store. After installation, the app goes through your voice call history and scans your SMS folder by going through MPESA transaction records to determine your ideal credit score. Other factors such as income level, MPESA usage, and loan repayment history from other lenders play a part in determining a fair score. Most new users get the first-time limit of Ksh500 and have to build their creditworthiness over time. However, the average credit is 10,000.
Benefits of Using the Tala Loan App
Tala Loan is a company that strives to facilitate lending money and other financial services in Kenya, Tanzania, Mexico, the Philippines, and India. Unlike banks and other money lending alternatives, this tala loan app download apk gives new users and potential loan applicants instant credit scores, making it possible to borrow good money.
There are many benefits of borrowing money on this platform, such as:
- Private and secure
There is no point in worrying about your personal information leaking to other third-party sites or individuals. The Tala Loan App offers a safe platform where your KYC information and contacts stay safe and protected.
- No security needed
Tala offers security-free loans; unlike banks and other lending institutions, it instead checks one’s CRB status to determine the client’s creditworthiness.
- Low-interest rates
The Tala Loan App charges low-interest rates, as low as 4%, on each loan. This makes it convenient to develop a flexible plan without worrying about colossal interest accumulation. In addition, depending on your repayment plan, you can pay a service charge instead of the interest rate. You’ll find various options, such as the 21-day plan attracting between 5% to 14% service charge or the 30-day offer charging 7% to 19% service charge.
- Double your limit
Apart from the instant credit score, it is straightforward to grow your limit and double it in two months. The limit increases up to Ksh30,000, and this is enough money to meet your personal and business needs. Statistics show that most borrowers double these figures in 2 months and quadruple in six months.
- Reliable and friendly customer service
The experienced customer care team is available 24/7 to help sort out any issues and answer all queries. Despite the platform you choose to reach out to, the average response time is less than five hours.
- Promotions and other offers
There are various promotions, such as the referral bonus, where you share the app with friends and earn Ksh500 for the next loan.
How to Download and Install Tala Loan Application
Before downloading and applying for the Tala loan, you must have a registered MPESA line and a smartphone. The app is compatible with Android and Microsoft devices; however, the Tala Loan App is unavailable for iPhone users. To download;
Open the Google Play Store app.
Search for Tala Loan App; it has more than 5 million Tala apps downloads.
Note that you need an active Safaricom line on the device to download and launch the app.
How to Register on Tala Mobile App
After downloading and installing the app, you’ll have to register and create a count where the credit will get credited. To register;
- Tap on the Tala app, then select the preferred language option, either Swahili or English.
- If it is the platform’s first use, select the “”I’M NEW – CREATE ACCOUNT”” option.
- Enter your active MPESA number in the format +254 712 345 678, and press ‘Next.’
- Enter ‘PIN’ for your number and proceed.
- Select ‘Yes, this is my primary phone to link your phone number to the Tala account, then press ‘Next.’
Why Is My Tala Loan App Account Registration Not Successful?
It is sometimes possible to find your mobile number is already registered, although to a different account. This is common for new users who bought their lines recently. If this is the case, you’ll have to confirm the former account holder is no longer the valid owner of the number. To remedy this, get in touch with the old account owner and ask them to send their KYC details, such as full names and phone numbers, using their active number by sending an SMS through the number 21991. The Tala customer team immediately works on configuring an account for you.
This is also the case if you purchase a new phone and register an account using an already registered number. If this is the case, ensure that you have your active Safaricom line linked to the previous telephone, then contact customer support to connect the new phone to the existing account. The advantage of using your old account is that there is no need to start building your limit afresh.
How to Apply for A Loan on Tala Application
It takes a few minutes to borrow cash from the Tala Loan App by following these simple steps;
Enter your username and password. It helps in your Tala login to your account.
Complete a short Tala loan application by answering some questions; getting the loan application response takes a few minutes.
If your application is successful, you’ll get your first loan offer based on the generated credit score. Choose the amount you need and your convenient repayment date. Pro tip: choose a date that aligns with your payday to avoid inconveniences.
Your loan application is complete, and money gets credited to your MPESA immediately.
What Is Entailed in The Loan Application Form?
The Tala app loan download issues a digital application form that is a questionnaire containing precise questions. These questions are used to gauge the loan applicant and determine if they qualify to get a loan. Some of the questions to expect are;
How did you use your last loan?
You should specify how you spent your last credit for personal, business, or other expenses. If you are a new applicant, indicate that it’s your first time.
What would you like to use the loan for?
This section requires you to classify where you plan to spend the money. For instance, is it for business purposes or personal needs?
Do you have outstanding loans?
Tala wishes to find out if you have taken any loans before. Answer the question accordingly since loan transactions are available to prove your feedback.
What kind of Personal/Business expense is this?
The questionnaire provides you with a drop-down list where you’ll choose one of the available options. For instance, you will find choices for medical expenses, emergencies, travel, education expenses, special occasion, or general expenses.
Please describe how you’ll use this loan in detail.
Based on the choice mentioned above, you must briefly elaborate on how you will use the credited amount. This applies to any option you choose.
Do you have any outstanding loans?
Answer either yes or no.
After this, Tala Loan App requires you to review the provided answers to ensure they are as accurate as possible.
How Does Tala Determine If You Qualify for A Loan?
Several factors determine the approval or rejection of a loan request, the main one being how consistent you were in your previous loan repayment. The more you pay your loans, including interest and facilitation fees, on time, the more likely your request will get approved. New users, however, have no past loan records, so Tala uses their MPESA messages to gauge their creditworthiness.
The second factor is your income. The more money you make, the higher the chances of your loan approval. Many other factors are considered, such as MPESA usage, and they all play a part in creating your credit profile. Using this profile, it is easier for Tala to issue security-free loans.
What Happens If Your Request Gets Rejected?
Your loan request may get rejected, and Tala advises applicants not to give up. Feel free to try again in a few days or weeks, and your loan application might get approved. You can also contact the customer care support line to understand how to re-apply for the loan better, and you might be lucky on the second time applying.
Tala Loan Repayment Options
The best way to increase your creditworthiness and limit is to pay your loans on time or before the stated date. There are two loan repayment methods available:
- Through the Tala Loan App
Open the app, display the current loan and click on the ‘Make Payment’ option. This then automatically prompts the MPESA menu on the phone. Copy the provided information and make your loan repayment.
- Through the Tala Pay Bill Number
- Open your MPESA Menu, click on the ‘Lipa Na MPESA’ option, then ‘PayBill.’
- Enter the PayBill number 851900 and your phone number as the account number.
- Enter the amount and provide your MPESA PIN to complete the loan repayment.
You can also use your friend’s mobile phone to settle your loan by following the second payment option, using the same PayBill number, and entering your registered Tala number as the account number.
Tala Loan Approval, Fees, And Borrowing Limits
Tala doesn’t charge any interest on the issued loans; they instead charge a flat service charge based on the amount borrowed. There is the 30-day loan offer where the service charge starts from 15%, especially for new users, and can go down to 7% for concurrent users. For the 21-day, the fees range between 11% and 5%.
These rates, however, apply to those who pay their loans on time. For example, if you use a 30-day loan, the service fees do not remain the same afterward. This is also the case for the 21-day option.
The Tala Loan App issues a grace period of 7 days to get your finances together and make the payments. After that, the charges increase to 8% on the remaining amount. After that, you get an additional 14 days to settle the loan if you can afford to pay this fee.
Tala Loan services are very flexible; however, missing to make your repayments on time affects your limit. These instances make it harder to grow your limit to the Ksh30,000 maximum. On the other hand, it is also possible to get a lower limit than the current one.
What Happens If You Fail to Make the Loan Payments Completely?
Apart from damaging your credit score, accessing similar services to other lenders such as Timiza and Branch will be impossible. This is a bad place to be, and you should try to make payments without delay as much as possible.
Those who take too long to pay get handed over to collection agents such as GILCHERYLTD, who contact you through your registered line. These agents will call you and involve you in making a compensation plan for the loan, plus interest and facilitation fees.
Failure to cooperate makes you listed with the credit reference bureaus, and the consequences are very serious.
After your loan request gets approved, the amount of credit you can get is determined by a few factors. You can borrow amounts ranging from Ksh1,000 to Ksh30,000. The Tala Loan App categorizes users into three categories, bronze, Silver, and Gold.
New users belong to the Bronze category and get a lower borrowing limit than the others. As a result, they averagely qualify for loans starting from Ksh1,000 to Ksh9,000. However, their growth potential is high, and they can quickly grow their borrowing limits and improve their credit score.
Once the new users start paying back their loans on time, they increase the chances of qualifying for the next category, Silver. This gives them access to more credit, and they can get loans from Ksh10,000 to Ksh19,000.
When you continue using the app and always stick to your loan repayment schedule, your reward is joining the Gold class. This category gives you access to fast loans of up to Ksh30,000.
Can I Top-Up My Loan When I Have a Pending Gone?
The problem with unsecured credit is it becomes tricky to top-up loans, especially if you haven’t completed the previous one. The best you can do is grow your credit score to access higher loans.
Why Is My Loan Limit Not Increasing?
You are still qualifying for the same maximum limit for various reasons. If this is your case, don’t get frustrated and be patient. You must build a good repayment reputation to access a higher limit and low service fees.
Even if you make on-time or early payments, Tala doesn’t guarantee that your limit will necessarily increase. If you are new to the platform, it will take about a month or two before you see an increase in your borrowing limits.
Customer Care Services
If you have troubles or any issues with the Tala Loan App, the best thing to do is contact the customer support team. The well-informed agents are better positioned to advise and provide alternatives to various issues such as PIN resetting.
You can easily reach out through;
- SMS by sending a message to 21991
- Your Tala Mobile application has a help section where you can find their contact information.
- Sending an email to email@example.com.
- Various social media platforms such as Facebook and Twitter. Open any of the applications and type in Tala Loan App.
The customer care team offers fast and reliable responses to your queries through the various platforms. Furthermore, they provide tips and ideas that you can use to make the experience more effortless. You’ll also find an FAQ section that contains answers to some of the common concerns, and this saves you time.
What Are the Disadvantages of Using the Tala Loan App?
You’ll have no issues with the app if you pay your loans on time. The only thing that might be a concern is that Tala doesn’t offer fixed rates and limits to everyone. So you might be qualified to get a loan, but still, your application gets rejected.
A few years ago, no one ever thought getting security-free loans on your phone would be possible. However, the Tala Loan App defied these beliefs by providing instant loans at lower fees. This article contains all the information you need to install, register, apply for a loan, and repay. Use it as your ultimate guide as you seek extra funds to boost your business or meet personal expenses.