Tala loans are provided by a Fintech company based in Santa Monica, California. The company operates in Kenya, Mexico, the Philippines, and also India. This company has helped many Kenyans financially and has disbursed more than $1 Billion.
The website utilizes an app, the Tala loan app, which allows it checks for customers’ loan worthiness and disburses loans in minutes. At the time of writing, the app has a 4.7/5.0 rating with over 10,000,000 downloads and 400,000 reviews.
The ratings and reviews have proved Tala to be one of the best loan apps available for Kenyans. The website also utilizes mobile USSD codes, which means you could borrow loans via USSD codes, for those that don’t have a smartphone.
The rest of this article explains everything you need to know about Tala loans, how to apply, requirements, contacts, repayment duration, are they legit or scam, amount limit, and so on.
Tala loan requirement
To get Tala loans, you must be at least 18 years old with a valid national identity number and must own a Smartphone, and also be a user of the M-PESA service. You don’t need any paperwork, collateral, or bank account details.
In general, the app must be granted access to your phone’s data. Your phone’s data is used to determine your creditworthiness and whether or not you will be approved for a loan.
How to Apply For Tala Loan App
First, you need to have a smartphone, Android to be precise because the Tala loan app is not available for iOS devices. Follow the procedures below to get loans from Tala.
1. Download Tala Loan App
Downloading the Tala Loan App is not a difficult task at all. All you have to do is;
- Head over to Google Playstore and search for Tala. The required Tala loan app for your country will pop up.
- Alternatively, you can visit this link to install the app on Google Play Store.
- Install the Tala Loan app
2. Register on The Tala Loan App
The next thing to do after you have completely, download the app;
- Launch the app for the first time, then, follow the onscreen instructions to Register.
- You will be asked to provide information like your, M-PESA account details, ID card, Phone number, and also to grant the permission app to certain access on your phone.
- You will be asked to verify your phone number.
- Provide the necessary details and you will be taken to your dashboard.
3. Apply for a Loan
The last step is to apply for a loan once your account creation has been approved. Apply for your desired loan and the amount will be disbursed into your M-Pesa account within minutes. You are given a preset limit, which differs by users, but generally, you can’t apply for more than Ksh 10,000 in your first loan, but the limit will be increased to up to KSh30,000 if you pay back your loan on time.
In general, your phone’s data, including SMS, apps installed, location, and phone details, is used to determine your loan worthiness. Don’t worry about someone stealing your data; Tala uses end-to-end encryption and does not share your information.
Tala USSD Code
Tala, unfortunately, does not provide any USSD Code services for its loans. Loans can only be requested through the company’s official mobile app.
If you don’t have an Android phone to install the app, you can check out the list of USSD codes for loans in Kenya. Make sure you also check the review of any platform you choose to see their interest rate and other information before applying for loans.
Tala Loan Interest Rate
Tala, like many other financial institutions that provide loans, receives a small sum of money in exchange for lending you money, which is known as interest. The amount of interest you will pay is determined by the interest rate and the length of the loan.
The branch loan interest rate is between 4% to 34%. But for starters, if you borrowed Ksh 4000, the interest rate is 14%, which is 560 for a period of 30 days. The total amount you will pay back is KSh 4,560.
Tala Loan Amount Limit
Tala Loan app minimum loan amount is Ksh 500, and the maximum loan amount is Ksh 30,000. You can only borrow amounts in this range and cannot exceed the Ksh 30,000 even if you are a die-hard user.
Tala Loan Repayment Duration
Tala offers loan terms ranging from 15 to 61 days. So, the loan is repayable for a week, up to two months. Remember that, the longer the repayment duration, the higher the amount to be paid back.
Tala Late Repayment Penalties
Just like many other financial providers, there are repayment penalties for those who do not pay back their loan within the agreed date. This is why you need to consider your loan duration. Will you be able to pay back within the loan duration you filled when registering.
Tala charges a one-time fee of 8% of the outstanding amount due. This is amount is automatically applied to your outstanding amount after the agreed date as a penalty for not paying back at the stipulated time.
Tala Loan Over Payment
If you overplayed back your outstanding loans, Tala will refund the amount back to your account within 24 hrs. If your overpayment is not disbursed on your M-Pesa account within 24hrs, make sure to call their customer care line. They will help you resolve the issue on time.
Repay Tala Loan Using Tala Paybill Number
You can repay your Tala loan using Tala Paybill. Follow the instructions below to repay your loan using Tala Paybill;
- Navigate to M-Pesa in your Safaricom menu on your phone
- Select Lipa na M-PESA
- Choose the Paybill option
- Enter the Paybill number 851900
- For account number, enter your M-Pesa number with which you registered with.
- Enter your repayment amount
- Enter your M-PESA pin
- Confirm that all details are correct and press ‘OK’.