Tala Loans in Kenya: A Step-by-Step Guide
Tala offers a quick and convenient way to get a loan in Kenya through their mobile app. Here’s a step-by-step guide to how Tala works:
Eligibility:
- Be a Kenyan resident with a valid ID.
Downloading the App and Applying:
- Download the Tala mobile app from the Google Play Store.
- Sign up and create an account.
- Complete the short application process within the app.
Loan Approval and Receiving Funds:
- Tala uses your smartphone data to assess your creditworthiness through a unique system.
- You’ll receive a loan offer decision within minutes.
- If approved, the loan amount will be deposited directly into your M-PESA mobile wallet.
Building Your Credit Limit:
- First-time borrowers typically qualify for smaller amounts between KSh 1,000 and KSh 2,000.
- Timely repayments on your loans help you build a positive credit history with Tala.
- With a good repayment record, you’ll be eligible for higher loan limits in the future, reaching up to KSh 50,000.
Repaying Your Loan:
- Tala offers flexible repayment options that work with your pay cycle.
- You can find the specific due date within the app itself.
- Timely repayments are crucial to maintaining a good credit score and unlocking higher limits.
Interest and Fees:
- Tala’s daily interest rate falls between 0.3% and 0.6%, subject to change (check the app or Play Store for latest rates).
- An excise tax of 20% applies on top of the daily interest.
Remember:
- Borrow responsibly. Only apply for what you can comfortably repay within the loan term.
- The Tala app provides all the details about your loan, including interest, fees, and due date.
By following these steps and understanding how Tala works, you can leverage their services to manage your finances effectively.