...

Tala Loan App Kenya: Download, Loan Amount, Rates &Application-All To Know in 2024

Joseph Wenani
14 Min Read

Mobile Loan Apps are a powerful tool for Kenyans, especially those seeking emergency or online loans. Among the Increasing loan apps in Kenya, the Tala Loan App shines brightly as one of the most preferred applications for lending money online. Who is the Founder of Tala? Shivani Siroya is the CEO and founder of Tala, which offers financial services to Kenyans. Besides Kenya, Tala Operates in Mexico, phillines and India. In Kenya, the Loan App uses in-house technology to provide genuine instant loans to anyone without a credit history.

What sets Tala apart in the Kenyan market is not just its accessibility but its unique features: instant loan approvals, flexible repayment terms, and the promise of financial inclusion for millions. Whether for personal emergencies, business deals, or immediate emergency loans, Tala servers all Kenyans by offering loans ranging from KSh 2,000 to KSh 50,000 with interest rates as competitive as 0.3% per day. So, if you are wondering how to get started with Tala, download the Tala Loan app, or even apply for Tala Loans in Kenya, this blog post has everything you need.

Let us get started

What is the Tala Loan App?

Launched in 2014, the Tala App has revolutionized how Kenyans access Online Loans. The Tala Loan App Represents a significant stride towards financial inclusivity in Kenya. With Tala, you can get instant loans without handling lots of paperwork like traditional banks. 

Overview and Unique Features

  • Tala Is a Mobile-Based Platform; thus, you can access it easily on your Android devices. 
  •  One of Tala’s standout features is its ability to provide instant loans and approvals, making funds readily available in your M-Pesa wallet.
  •   Tala offers Flexible Repayment Terms depending on the amount of Loan Given. 
  •  Tala Caters to a broad demographic and disburses loans ranging from KSh 2,000 to KSh 50,000, with interest rates starting as low as 0.3% daily​​.

Tala primarily serves:

  • Individuals in need of quick financial assistance for emergencies.
  •  Entrepreneurs seeking capital to start or expand their small businesses.
  •  Persons with no or limited access to traditional banking services.

Why Tala Stands Out In Kenya

The reason Tala has become a preferred choice among many Kenyans is many:

  • The App offers a simple interface that ensures applying for a loan is easy and stress-free
  •  Funds are immediately sent to your M-pesa once they are approved
  •  You do not need a credit history to apply for a loan with Tala.

How Does the Tala Loan App Work

The Online digital lending space in Kenya is filled with Many digital lenders. However, despite the growing numbers, Tala Loan App stands out. When Applying for a loan with Tala, it is crucial to know the eligibility criteria in place, loan amounts, and interest rates offered. Here is what to know:

Requirements For Tala Loans Application in 2024

To access Tala’s financial services, you must meet a set of essential requirements to ensure a secure and inclusive lending environment:

  • You Must be a Kenyan Citizen with a National identity card as proof 
  •  You must have a registered Safaricom Number Linked to your M-Pesa account
  •  You Must have an Android smartphone that allows you to download Tala App.

How To Apply For Tala Loans Via the App In Kenya

Tala Loan App: Download, Loan Amount, Rates &Application-All To Know in 2024
  1. Download the App: Start the process by downloading the Tala App from the Google Play Store.
  2.  Sign Up: To use the App, you must register with the App by providing the necessary personal information.
  3.  Loan Application: After completing the requirements, apply for your desired loan amount through the App. 
  4.  Instant Decision: Tala uses an advanced algorithm to evaluate your applications and see whether you are eligible for a loan on their platform. Here on the App, you can see your Tala Loan Status.

Tala Loan Approval and Disbursement

Several factors come into play to determine whether you are eligible for a loan. The App uses an in-house algorithm that assesses your creditworthiness based on mobile phone data, including M-PESA transaction history. The process ensures that even those with no credit history can apply for loans on TalaApp.

Tala allows first-time borrowers to apply for loans ranging from KSh 1,000 to KSh 5,000, possibly increasing this limit to KSh 50,000 through consistent, timely repayments. Upon approval, loans are promptly disbursed to your M-PESA account within minutes.

Tala Loan Fees, Interest Rates, and Repayment

Loan Fees and Interest Rates

Tala distinguishes itself by adopting a transparent fee structure, referred to as a ‘Service Fee,’ rather than traditional interest rates. This fee varies based on the loan term and amount, providing flexibility and clarity to borrowers. For loans, Tala charges a service fee ranging from 5% to 14% for a 21-day loan term and 7% to 19% for a 30-day loan term. What Makes Tala stand out is that it communicates the total repayment amount upfront, ensuring borrowers are fully informed of their commitments before borrowing a loan.

How to Repay Your Tala Loan Via M-Pesa

Tala Loan App: Download, Loan Amount, Rates &Application-All To Know in 2024

​ Does repaying your Tala Loan on time increase your Loan Limit? Currently, the maximum Tala Loan Limit is KSH 50,000, and making your loan payments on time can help you achieve this. Talas allows its customers to Repay their Loans by utilizing the Tala Mpesa Paybill. Here is how to go about it:

  1. Go to your M-Pesa Menu.
  2.  Select “Lipa na M-Pesa.”
  3.  Choose the Paybill option.
  4.  Enter Tala’s pay bill number 851900 as the Business number.
  5.  Input your phone number (the one you registered with Tala) as the Account number.
  6.  Enter the amount you wish to repay.
  7.  Input your M-Pesa PIN and confirm the transaction.

Remember that failing to Pay Your Tala Loans on time may attract additional fees and impact your credit score. Negatively. Tala has a maximum repayment period of 60 days, after which your details are forwarded to CRB.

Pros and Cons of Tala Loans

When considering a Tala loan, weighing the advantages and disadvantages is crucial for making an informed decision. 

Pros of Tala Loans

  1. Fast and Convenient Access, ensuring funds are available within minutes of approval​​.
  2.  With Tala, borrowers benefit from flexible repayment schedules tailored to fit their financial circumstances, which can significantly ease the repayment process.​
  3.  Tala allows people with No Credit History to access loans based on their mobile phone data and transaction history.​ 
  4.  Potential for Increased Loan Limits if you repay our loans on time.

Cons of Tala Loans

  1. Relatively High Service Fees, especially compared to traditional bank loans, pose a challenge for some borrowers.​ 
  2.  Late payments incur additional fees and can adversely affect one’s credit score, making it harder to secure loans from other lenders in the future.​ 
  3.  The maximum Tala Loan Limit of KSH 50,000 might not meet the needs of those taking loans for business development​.

Is the Tala Loan App Safe and Legitimate?

In the digital online lending space, the safety of each online application should be paramount for all users. With the many applications being Published daily, it is hard to spot who is a scammer and which application is legitimate. Therefore, when also choosing Tala, assessing its security measures, regulatory compliance, and user trustworthiness is crucial.

Safety and Security Protocols

Tala’s commitment to user safety is evident through its robust data protection measures. The App requires standard permissions for financial applications, including access to SMS, contacts, and device data, to assess creditworthiness accurately. However, Tala upholds strict privacy policies to protect personal information from unauthorized access or use​ . On their website, you can access all the Private Notice pages to help you understand the following:

Regulatory Compliance

Tala operates with full licensing under the Central Bank of Kenya, adhering to the regulatory standards for non-banking financial institutions. This compliance reassures users of Tala’s commitment to ethical lending practices and its standing as a reputable financial entity.​ 

Tala Loan App: Download, Loan Amount, Rates &Application-All To Know in 2024

User Reviews and Testimonials

As of the article’s writing, the Tala loan app has received 4.6-star ratings, 466K reviews, and 10M+ Downloads on Google Playstore. Taking the time to review Tala App reviews and testimonials, you will get an overview of what Tala is like. A quick check on the App shows that many users praise it for its swift disbursement times and user-friendly interface; others point out areas for improvement, such as the clarity of loan terms and customer service responsiveness​ . Here are some of the mixed reviews:

BERNARD KIHIU-Google Playstore

Very efficient, reliable, customer-friendly, pocket-friendly interest rates, and convenient repayment period based on your ability. I highly recommend it to any interested borrower. Tala all the time! *TALA, THE BEST FOREVER!*

kasiera cynthia -Google Playstore

I have been trying to access the app to apply for a loan. It keeps telling me about internet issues, yet I have strong Wi-Fi. After struggling to access it, I’m not even allowed to apply for a loan, and I am immediately declined. Surely, and the app has issues 😕

Data Privacy Concerns

In the digital age, data privacy emerges as a critical concern for users of mobile applications. Tala ensures the confidentiality of user data, employing advanced encryption technologies and privacy safeguards to protect sensitive information. Moreover, Tala’s transparent disclosure of its data usage policies fosters trust and confidence among its users.​ 

How long do I have to repay Tala? 

Tala offers up to 61 days to repay your online loan in Kenya. To make things easier, customers can repay in full or partial payments as long as payments are completed by their chosen due date.

How much loan does Tala give for the first time?

With Tala Kenya, first-time loans start from between KSh 1000 and 5000. With on-time payments, customers can build a strong credit history with us and become eligible to increase loan amounts up to KSh 50,000.

Can I pay my Tala loan installment?

Yes, you can pay in installments until you fully pay your loan, as long as all payments are made by your due date.

Conclusion

The Tala Loan App stands as a testament to the possibilities of financial technology in enhancing access to credit. Its adherence to safety protocols, regulatory compliance, and continuous efforts to improve user experience underscore its legitimacy and reliability as a mobile lending platform. As with any financial tool, potential borrowers should conduct thorough research, consider user reviews, and assess their repayment capacity before committing to a loan. In this blog post, I have taken you through everything you need about the Tala Loan App, from requirements and app download to the application process. If you have any questions regarding the article, ask them below, and I will gladly help you.

All the best in Your Tala Loan Application Journey.

Share This Article
Leave a comment
Seraphinite AcceleratorOptimized by Seraphinite Accelerator
Turns on site high speed to be attractive for people and search engines.