There are times when you are stuck financially and no help is forthcoming yet you need a quick fix to sort an emergency situation such as school fees, house rent, medical bills or even capital for your business.
Luckily for thousands of Kenyans, a modern easy-to-use mobile app has been developed, which offers fast and easy loans to all smartphone users including the marginalized, remotely located and unbanked population.
With the introduction of Tala loans Kenya, borrowers don’t need to reach out to lending institutions such as banks, loan sharks, or friends for help.
This article will help you figure out everything you need to know about the app eg how to apply and repay the Tala loans, and many others.
What is Tala Loan App
This is an online mobile platform which was previously known as ‘Mkopo Rahisi’ that enables Kenyans with android phones to request for instant loans and receive them within 24 hours.
Although your initial loan limit can be as low as Ksh 500, there is a high chance of increasing the amount to the maximum limit, which is Ksh 50,000 by timely loan repayments.
Another huge advantage is the fact that Tala loan does not require any form of collateral when making an application as is the case with other lending institutions.
There are three Tala loan limits:
Bronze starts at a minimum limit of Ksh 500.
Silver has a minimum loan limit of Ksh 5000.
Gold starts minimum limit of Ksh 10,000.
The interest rates are usually between 11% and 15% depending on your loan amount.
Who qualifies to apply for Tala Loans?
Everyone can qualify for Tala loans as long as they have an android powered phone, a national ID, and a registered Safaricom M-Pesa SIM card.
Note: When you take a loan that is lower than your current loan limit or default on your loan repayment, then your loan limit may go down.
Always aim to make a credit that is closer or the exact amount of your loan limit or else everything below the required amount and your loan limit may drop.
Also, don’t uninstall the app if you get the message that you don’t qualify for a loan. In that case, keep checking your loan limit as it can change anytime.
How Tala loan application works
One of the main reasons why most people go for Tala loans is its short and easy-to-follow application process.
Although it's limited to only Safaricom M-Pesa users, getting a loan through Tala doesn’t require you to fill out so many forms.
The approval process for Tala quick loans in Kenya is instantaneous and quite streamlined.
However, as a first-time customer, you need to give few personal details.
The Tala online system will then use all the provided data to process your loan, again with no security required.
The app uses your mobile phone to gather all the necessary information that can be used to gauge your creditworthiness.
If your device often receives M-Pesa transactions, then that useful data will work in your favour as it might increase your loan limit.
Additionally, when you register, you do not need to link your account with your Facebook profile. Tala will not use the information from your Facebook account.
If you change your mobile device without notifying Tala, you will get an error message stating what you should do next.
That said, the moment you turn your mobile phone device, install the Tala loan app on your new phone and contact Tala for any case of any inquiries, complaints or problems via:
1. Their in-chat app on the Tala loan app
2. Social media handles including Facebook and Twitter.
3. Email - hellokenya@talamobile.com
4. SMS - 21991
How to download the Tala Loan app
Before you get started with Tala loan application, you need to:
1. Download the app from Google Play Store first.
2. Answer a few questions.
3. Key in your Safaricom M-Pesa phone number.
Note: Downloading the app is a must for you to be able to register.
The app is only available to Android phones with an operating system of 4.0 and above.
iOS iPhone and Windows phone users, for now, have to be patient until a Tala loans app that is compatible with their iOS is developed.
Through upgrading to the latest version of the app, customers can check their credit status, track payments, and even read other customers reviews as well as their success stories.
Here is the process:
1. Go to the Google Play Store on your phone and click on it.
2. Second, on the search button, type ‘Tala app.’
3. Now Click the ‘Install’ button and wait for the app to complete downloading.
4. Then Open the Tala app and link your active Facebook account.
Note: Remember to Give accurate information of all the questions asked to complete your registration. The answers you give to the personal items will determine whether or not you qualify for the credit advance.
How to Receive Tala loan on your phone easily
After you request for a loan, Tala will disburse it within minutes to your M-Pesa account.
Their loan interest rate is flexible, and the repayment duration will depend on the repayment plan selected. But, the period ranges from 21 to 30 days.
Below is an easy way on how to get your first Tala loan:
1. Upon downloading and installing the app, click on the button written, I’m New followed by Create account.
2. Enter your Safaricom M-Pesa number and wait for a confirmation code.
3. Enter the confirmation code sent by Tala.
4. From your Tala account, set your four-digit PIN. Ensure that you can easily recall the pin since if you enter the wrong pin several times; for security purposes, your account will be blocked.
5. Finally, Confirm your ideal PIN and then click on the Submit button.
What are the consequences of not repaying the loans?
Once you request for the loan, the disbursement is super fast.
The Tala loan application is designed to go further and send you notifications to remind you that the loan repayment debt is due.
You also get more than enough time to repay your loan without a rush. And even if you’re a bit late with the loan repayment, you get a grace period of 60 days.
If you fail to pay the loan after the adequate period given, Tala will not let you joke around with their money.
To begin with, your account is linked to the phone number you use to register with Tala. Your name will be submitted to the CRB with a wanting loan history.
That might consequently and potentially limit your chances of getting a loan from a bank, let’s say a mortgage credit if your credit score is very low.
But, it may only come to this point if you refuse to pay back your loan even after being advised on how to do so by debt collectors associated with the company.
Tala terms and conditions clearly state that if you default on a credit advance, then Tala has the right to engage an external debt collection agency to seek repayment.
How to repay Tala loan using M-Pesa
If you want to avoid getting a bad credit score, you need to understand how to repay Tala loan.
Consistently make sure you repay your loan before the stipulated deadline to avoid any complications.
Tala loan repayment process is also pretty straightforward.
The phone number you used to register with Tala and the Tala pay bill number is what you need to repay your loan.
Below is a comprehensive guide on how to pay Tala loan using M-Pesa:
1. Open M-Pesa menu on your phone
2. Lipa Na M-Pesa then select pay bill
3. Insert the official Tala pay bill number-851900
4. Input phone number you used to register with on Tala as the account number
5. Now Complete the process by keying in the loan amount you want to repay then input your PIN.
6. Then Confirm both the amount and the recipient
7. Wait for confirmation.
After your loan request is accepted, the Tala support team will send you the amount via your M-Pesa.
The team will also email you a complete breakdown of how much money is owed and the exact due date.
Note: One can also use the same process to fund a Tala loan for a family member or a loved one. When your phone isn’t working, then don’t worry.
One can still use your friend’s or family member’s phone number to carry out the Tala loans repayment. However, you need to ensure that they do not have an outstanding Tala loan.
Don’t forget, while you can use your phone number to repay a loan for someone else, you cannot take credit for someone else using the same mobile device.
On the other hand, if you overpay your loan, then the extra amount will be credited to your Tala account. On the next time, you take another loan, Tala will use that amount to repay your loan in part.
Also, you can get a reversal in your M-Pesa if you overpay your credit, and request for the overpay.
One can use Tala contacts to get a new pin in case you block your Tala account through entering the wrong pin too many times.
One will be requested to upload their selfie, front ID photo and back Identity photo to their social media pages or email, after which they will send you a temporary Mkopo Rahisi login pin.
Provided selfie and ID details work to confirm that you are the operator of that Tala account thereafter which they will then unblock it.
