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Tala Loan Limit: Increase your Limit to KSH 50,000-All To Know 2024

Joseph Wenani
10 Min Read

In Kenya’s Financial Landscape, Tala is a lifesaver for those who need quick emergency Loans. Behind Tala Mechanics of Operations stands the Tala Loan Application, an online lending app that has changed how we access Loans online. Tala has opened a world of possibilities by allowing Kenyans with No credit history to access Loans, which is impossible with traditional banks. The platform uses its in-house algorithms to determine loan limits for applicants looking to apply for loans. When you sign up with the platform, it will try to analyze your mobile phone data usage patterns and M-PESA transactions, amongst others. Therefore, for potential borrowers, understanding Talas Loan Limits is essential. So, what are the Tala Loan limits in 2024? How do I increase my Tala Loan Limit?

How Tala Loan Limits Work

When looking to borrow money from the Tala Loan App, the platform begins with understanding how the app determines the amount you can borrow. Below is everything you need to know:

Credit Scoring

What happens if you want to borrow money from a bank? Usually, all traditional banks will conduct thorough background checks on your credit history. You know how a bank will treat you if you have a low credit score. However, Tala’s mechanics work differently. The platform uses its proprietary algorithm to assess creditworthiness. The platform will mainly analyze your M-PESA transactions to determine how you interact with money at a personal level​. This method enables Tala to extend its services to all Kenyans and lend out loans to those with no credit history but who exhibit financial responsibility through mobile transactions.

Factors Influencing Your Loan Limits

Several variables come into play when Tala determines your loan limits. Key among these are:

  • Your phone usage patterns offer insights into your lifestyle and financial management habits​ 
  • M-PESA Transactions: the more you transact with M-Pesa, the higher the chance of getting a Tala Loan
  • Timely repayment of previous loans boosts your credibility, signaling to Tala your trustworthiness as a borrower​ 

What are the Tala Loan Limits

For newcomers to the Tala platform, loan limits are set within predefined tiers, reflecting an initial assessment of creditworthiness. These tiers are:

  • Bronze: Spanning from Ksh 500 to Ksh 4,999, this tier is the entry point for new users, offering a modest beginning to your borrowing journey​ 
  • Silver and Gold: As you ascend to these levels, your minimum and maximum loan limits expand, with the Gold tier offering loans up to Ksh 50,000 for those demonstrating the highest level of financial responsibility​.

The Maximum Tala Loan Limit

What is the highest loan in Tala? Tala has established KSh 50,000 as the maximum loan limit a borrower can achieve. Previously, the loan limit was set at Ksh 30,000. Still, it increased to Ksh 50,000 in response to customer demand for higher loan limits. Several vital considerations influence the decision to put the Tala Loan Limit at KSh 50,000:

  1. Risk Management: Tala employs this limit as a safeguard against potential defaults, ensuring the sustainability of its lending model​ 
  2. Promoting Responsible Borrowing: By setting a maximum, Tala encourages borrowers to live within their means, fostering a culture of responsible borrowing. 
  3. Market Dynamics: The loan limit is designed to meet the majority of immediate financial needs without encouraging over-leverage​ 

Tips To Increase Tala Loan Limit KSh 50,000

How can I increase my Tala loan limit? The short answer is yes for those wondering if reaching the maximum Tala Loan Loan Limit is possible. For new borrowers, you will consistently be awarded loans in the Bronze tier, which spans from Ksh 500 to Ksh 4,999. However, you may want even more limits in the Silver and Gold tiers with maximum tala loans at  KSh 50,000. In that case, you must be willing to apply for financial responsibility. Here are the proven methods that work to increase your Tala loan limit:

1. Building a Strong Repayment History

Your repayment history is the cornerstone of increasing your loan limit with Tala. Consistently repaying your loans on time or even ahead of schedule sends a powerful message about your creditworthiness. It’s a clear indicator to Tala that you manage your financial obligations with utmost seriousness, thereby increasing their trust in you as a borrower. 

2. Transact with M-PESA Always

So, when we started the article, I mentioned that Tala gives loans to people with a credit history. Right?. Yes, but to do so, they employ their in-house algorithms tapping into your M-PESA transaction history to assess your creditworthiness. An active M-PESA account with various transactions can positively influence your loan limit. Here’s how:

  • Frequent transactions through M-PESA demonstrate an active financial life, suggesting a steady flow of income and expenditures.​ 
  • Engaging in a mix of M-PESA services, including sending money, paying bills, and buying airtime, also signals responsible financial behavior.​

3. Share More Data (Optional)

Granting Tala additional permissions to access more data on your smartphone can work in your favor. While this step is optional, it gives Tala a broader perspective of your financial habits and reliability. By sharing additional information, weigh the benefits of potentially higher loan limits against your comfort level​ .

4. Long-Term Usage Demonstrates Commitment

 Just like in any relationship, trust is built over time. Consistently using Tala and adhering to their terms and conditions strengthens your credibility as a borrower.​ 

Additional Factors Affecting Tala Loan Limits

Beyond the Known methods to Increase your Tala Loan Limit we have discussed above, several external factors play a crucial role in shaping your borrowing capacity. They include:

1. Phone Usage Patterns

The way you use your phone offers Tala a glimpse into your lifestyle and financial habits. Irregular phone usage or patterns that deviate significantly from the norm can raise flags about your stability or reliability. 

2. Tala Promotions

Occasionally, Tala introduces promotions that temporarily adjust loan limits. These promotions can provide an excellent opportunity to access higher loan amounts under favorable terms:

3. Market Conditions

Kenya’s broader economic environment and market conditions can influence Tala’s lending policies, including loan limits. Economic downturns, for instance, might lead to more conservative lending practices.

4. Repayment Period Selection

The choice between a 21-day and a 30-day repayment period affects the interest rate. It influences how Tala perceives your borrowing and repayment behavior. Opting for a repayment period that aligns with your financial capacity can contribute positively to your credit profile, affecting future loan limits​​.

How long does it take to increase my Tala loan limit?

Increasing your Tala loan limit can take only a matter of months. Borrowers who make on-time repayments with Tala can see their loan limits climb higher and higher within a few months.

Can I get a Tala loan if the CRB blocks me?

You can still get a Tala loan even if the CRB blocks you. Tala and other mobile lenders like Branch have been banned from listing borrowers on the CRB, which means they do not use the CRB blocklist to determine loan eligibility. Therefore, being blocked by the CRB allows you to access a loan from Tala.

Conclusion

That’s it, friends. In this article, I have taken you through everything you need to Know about Tala Loan Limits In Kenya, including tips for increasing your limits. These tips range from understanding the importance of building a solid repayment history and leveraging M-PESA transactions to reach the KSH 50,000 Tala Loan Limit. Responsible financial management is the key to a successful borrowing experience with Tala. By following all the information mentioned in the article, you are on the right path to achieving higher loan limits. Also, remember to check your loan limit using the Tala Loan app to know which tier you are in. If you have any questions that need clarification, comment below, and I will get back to you as soon as possible.

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