Tala is a popular digital lending platform that provides access to loans to people who might not otherwise have access to traditional financial institutions.
While borrowing from Tala can help you cover unexpected expenses or bridge financial gaps, it’s important to have a plan in place for repaying your loan.
In this article, we’ll discuss some practical tips for repaying your Tala loan and staying on top of your finances.
Tala
Tala is a mobile loan application that provides unsecured loans to individuals in Kenya.
The app uses data from the user’s mobile device to determine their creditworthiness and assess their ability to repay the loan.
To apply for a loan, users need to download the Tala app and create an account.
They then need to provide some personal information, such as their name, phone number, and ID number, and allow the app to access their phone data.
This includes information such as call logs, SMS messages, and financial transactions.
Tala uses this data to create a credit score for the user, which is used to determine their eligibility for a loan.
If approved, the user can access loans ranging from Ksh 500 to Ksh 30,000 with repayment periods of between 21 and 30 days.
The loan application process is fast and simple, and funds are disbursed directly to the user’s mobile money account once the loan is approved.
Users can also track their loan repayment progress through the app, and are provided with helpful tips to improve their creditworthiness and financial management skills.
Tala is a popular loan app in Kenya, particularly among individuals who may not have access to traditional financial services or who require quick access to funds for emergencies or unexpected expenses.
How to repay Tala loan
To repay a Tala loan, follow these steps below;
- Open M-PESA.
- Select Lipa na M-PESA.
- Select PayBill.
- Enter 851900 as the Business Number.
- Enter your phone number as the Account Number.
- Enter the amount you would like to repay.
- Enter your PIN number and press OK.
How to reset Tala loan app PIN
To reset Tala loan app PIN, follow these steps below;
- Open Tala app.
- Click on Forgot PIN?
- Input your national ID number.
- Enter the temporary PIN sent to you via SMS.
- Choose a 4-digit PIN.
- Confirm the PIN.
FAQ
What is Tala?
Tala is a mobile lending app that provides unsecured loans to individuals in Kenya.
How does Tala work?
To use Tala, you need to download the app and create an account. You will then be required to provide some personal information and link your M-PESA account to the app.
Once your account is approved, you can apply for a loan, and if approved, the funds will be disbursed to your M-PESA account.
What are the loan requirements?
To be eligible for a loan from Tala, you must be at least 18 years old, have a valid Kenyan ID, have an active M-PESA account, and have a good credit history.
How much can I borrow from Tala?
The loan amounts offered by Tala range from Ksh 500 to Ksh 50,000, depending on your creditworthiness.
What is the interest rate on Tala loans?
The interest rate on Tala loans varies depending on the loan amount, loan term, and the borrower’s creditworthiness. However, the interest rate can range from 5% to 15%.
How long does it take to receive funds from Tala?
If your loan application is approved, the funds will be disbursed to your M-PESA account within minutes.
How do I repay my Tala loan?
You can repay your Tala loan through the app using your M-PESA account. The app will automatically deduct the loan amount plus interest on the due date.
What happens if I fail to repay my Tala loan?
If you fail to repay your Tala loan, your credit score will be negatively affected, and you may not be eligible for future loans. Tala may also take legal action to recover the debt.
Is Tala safe?
Tala is safe to use as it employs various security measures to protect your personal and financial information.
Additionally, Tala is regulated by the Central Bank of Kenya and adheres to the regulatory requirements.
Can I apply for a loan from Tala if I have a bad credit history?
It may be difficult to qualify for a loan from Tala if you have a bad credit history.
However, Tala uses alternative credit scoring methods, which take into account other factors such as your social connections, transactional history, and other data points to assess your creditworthiness.
Conclusion
Repaying a Tala loan is a straightforward process that can be completed within a short period of time.
The first step is to ensure that you have enough funds to make your payments on time.
Tala offers a variety of payment options, including mobile money transfers, bank transfers, and Tala agents, making it easy for borrowers to choose the most convenient method.
It is also important to keep track of your loan balance and payment schedule to avoid late payments and potential penalties.
In case of any difficulties, Tala’s customer service team is available to assist borrowers in finding a suitable solution.
Repaying your Tala loan on time not only improves your credit score but also opens up opportunities for larger loans in the future.
By following these simple steps, borrowers can enjoy the benefits of Tala loans and build a better financial future.
