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Tala  Mobile Loan App : Highly Rated By SME’s In Kenya

Tala Mobile Loan App : Highly Rated By SME’s In Kenya

Post Series: Mobile Loan Apps
  • 1.Tala Mobile Loan App : Highly Rated By SME’s In Kenya

Tala Loans Mobile Money App

Introduction

The Tala Loans App is owned by a company based in California with its loan-lending operations in Kenya, Tanzania and the Philippines. Formally going by the name Inventure, The Tala Loans App is deemed Kenya’s number one finance app.

Tala has gained a lot of popularity in the last two years and has become an app in almost every Kenyan’s phone especially with the use of smartphones being widespread and the need for financial aid going up.

The Tala Loans App was introduced into the market when traditional ways of getting a loan were not popular because of the securities that come with them. Increased unemployment rates and poor economic conditions further fueled the increased use of the Tala Loans App.

The minimum amount of loan that can be borrowed through the Tala Loans App is 500 Kenyan shillings while 30,000 is the maximum amount of loan offered on the platform. The loan limit is increased through borrowing and promptly repaying the loan on time and while adhering to the right replacement procedure.

The Tala Loans App uses the principle of adherence, time consciousness and borrowing a larger amount on your next loan to increase the limits. One is not able to grow their limit if they keep borrowing 500 shillings over and over again even if they always repay on time.

Customers of the Tala Loans App are always on a quest to build their credit profile. It is this score or profile that will show the company the type of borrower one is and whether or not they deserve a loan from the app.

A strong credit profile is built by always repaying loans on time and following the right loan repayment schedule.

What Tala Loans App does

This financial app offers unsecured loans to Kenyans. When compared to traditional loan lenders like banks or microfinance institutions, the Tala loans app is a whole lot different. The main difference between the two is that Tala Loans App dos not require security in exchange for the loans.

Examples of such security placed against the loans are payslips, title deeds or car logbooks. A no-security policy should, however, not be confused with unmonitored loans because in the event of a default in a loan, Tala loans will have your name blacklisted under CRB.

One has to download the Tala loans app, register their full names, phone number and an email address. After this, a profile is created and the new member can qualify for a loan of 500 Kenyan shillings. If they repay this loan on time, they can qualify for a loan higher than 500 Kenyan shillings next time.

The Usefulness of the Tala Loans App

Over a million Kenyans have downloaded the Tala mobile application and registered on the site in attempts to get a loan. Most of these individuals have qualified for loans and their accounts been credited through M-Pesa.

The Tala loans app is quite easy to navigate. It is user friendly and quite straightforward to manoeuvre. The different menus are visible and it is easy to move from one feature of the application to the other.

This, therefore, means that very individual is able to use the app, inconsiderate of one’s level of education. The use of the Tala Loans App is not only confined in the big cities and towns but also in rural areas.

The easy navigation of the site makes it user-friendly. One does not need any tech skills to be able to use and access loans on the Tala Loans App. All one needs is basic understanding of the English language and they are good to go.

Problems solved by the Tala Loans App

Kenya’s economy is growing at a steady rate and this means that the living standards continue to go high. The number of individuals that are unemployed supersedes the number of those in employment. These high unemployment rates mean that many people do not have money to cater for their day-to-day needs. As for those in employment, their salaries and wages are often too low and cannot sustain them through the month.

If an employee is paid on the first day of the month, this money will have been spent before the fifteenth and they will need an extra source of income for food, fare to work as well as any other expenses. This is when they start calling their friends to ask for a “soft loan” and most often than not, these friends do have the money to lend. Some would resort in asking their employees for an advance payment but this will then cause a shortage in the next month’s salary.

Some people also run into emergencies that require money to sort out the issues but most of them do not have the money at hand. Medical emergencies for instance are the most common ones then followed by school fees emergencies.

Sometimes, an individual may come across an opportunity of a lifetime and if they only had a certain amount at the moment, then they would have invested in that opportunity and even changed their lives forever.

But in most cases, employees are forced to live in a dangerous vicious cycle of borrowing from friends, other people lose their loved ones in hospitals because they could not raise enough money for a life-changing surgery. For others, their children stay at home, missing out on precious lessons in school because they cannot raise the school fees on time. But thanks to the Tala Loans App, most of these problems have been solved.

The Tala Loans App has helped many people that were in dire need of finances. Nowadays, people do not have to bombard others with calls and texts to beg people for money. People who in most cases do not have the money and even if they had, they would rather not lend it out. From the comfort of one’s smartphone, they can assess these loans, offset their bills and then work towards repaying them back to be able to qualify for higher loans next time.

How the Tala Loans App works

The first step is to download the app from Google Playstore and then the company will then decipher whether or not you qualify for a loan. The information you provide when registering is used alongside other pieces of information such as one’s income, how you repay other loans say in banks and microfinance institutions with the biggest one being your M-Pesa usage and transaction history.

There is also more information that Tala Loans uses to decide one’s credit worthiness although this kind of information is not out in the public domain. Most of this information is collected automatically when signing up because Tala Loans can access other databases.

The average loan provided by Tala Loans is 10,000 Kenyan Shillings although the first loan one can qualify for is 500 Kenya Shillings. The loans are unsecured and it is upon an individual to learn how to repay the loans on time to be able to build a strong credit score and thus qualify for higher loans and less interests on their subsequent loans. One is only eligible for a higher loan depending on their repayment behaviour of past loans.

There are two repayment options offered by Tala Loans. One is the 30 day loan that carries a 15% service fee. As one keeps using this service and repaying on time, the service fee can drop to as low as 7%.

The second Tala Loan plan is the 21 day loan that has a service fee of 11% and with a good track record of repaying the loan, this service fee can go as low as 5%.

To download the Tala APK loans app, you will need to be a registered user of M-Pesa and have an android phone with O.S. 2.3.3 or higher

How Do I Use The Tala Loans App?

  • After downloading and installing the application from Google PlayStore, you are required to link the Tala Loans App to your active Facebook account and then register as a customer.
  • Tala Loans will then ask for such information as your phone number and then you will be asked some personal questions
  • Tala will depend on the answers provided to assess your loan eligibility
  • Tala will review the information and then you will get a notification from them informing you of whether you qualify for a loan or not and how much exactly you qualify for.

Pros of the Tala Loans App

  • Once you qualify for a loan and you borrow the same, it is disbursed as fast as possible and this makes it reliable for emergency loans
  • The loan app provides a loan repayment schedule for its customers and thus ensuring prompt repayment.
  • They also provide an ample repayment period even after your repayment date is overdue.
  • There is a grace period of 30 days that defaulters are given before they are blacklisted on CRB
  • It is easy to use the app as it is user friendly

Cons of the Tala Loans App

  • Tala Loans have ridiculously high interest rates when compared to other mobile loan providers
  • The varying interest rates from one customer to another as well as different loan limits makes it a challenge for a customer to determine what loan they can qualify for and also the amount they are supposed to repay.

What people are saying about the Tala Loans App

Many people have gotten the help of Tala when they were in a tight financial position and received a loan that saved them. Most people would actually recommend the app to family and friends. One thing that people are not happy about is their follow-up procedure when one delays to repay the loan.

Tala Loan representatives bombard possible defaulters with reminder texts and calls every two hours which a lot of people find it taxing and would even go ahead and not repay the loan because of the unprofessionalism portrayed.

Some customers have also complained of being listed under CRB even after they already repaid their loans in full and when they launch complains with Tala Loans management, they do not get any response on the same.

What should be Improved about the tala Loans App

The app itself works absolutely well but the terms are what should be improved. There should be a pre-stipulated formula to use so that one’s loan limit is predetermined and one can know how much they are eligible for without having to log onto the application to inquire.

Also, the interest rates should be reduced because they are clearly too high. The time period for repayment should also be increased to give customers ample time to find the money and repay. For most people, they find out that they have been blacklisted, not because they refused to repay the loan but because the time was too short and were unable to pull the strings early enough.

 

Many people appreciate this loan-lending app for helping them in many ways and the fact that sometimes the platform does not treat them like valuable customers makes many people feel as though the company is being too hard on them. It should be a two way relationship where both parties benefit but sometimes, the company feels like it is the customer that needs it.

Conclusion

The Tala Loans App is an effective and efficient way to get loans for an emergency, start and grow a business or for any other financial needs. Their immediacy in terms of approving and sending the loan via M-Pesa makes it even more reliable.

Communication between the company and the customers should be improved. Complaints should be addressed on time and any wrongful listing sorted out because this affects a customer’s credit score.

Correct and thorough vetting of customers should be conducted to see to it that people with the right track record in terms of loan repayment are awarded. This will filter out any individual with the tendency of defaulting on loans.

Tala Loans are a literal life-saver.

Samwel Dollah

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