Sunday, September 20, 2020

How Tala Loans Work

    September 20, 2020   No comments

Tala app

Tala is a digital lender that is giving fast and affordable loans disbursed through a borrower's Mpesa account in Kenya and through a bank account in other countries.

Registered as Tala Mobile in the United States, this digital lender provides loans to the unbanked who own smartphones and need Credit to better their lives.

How Tala Works in Providing Credit. 

Tala app is the platform from which the borrower will apply for the loans and on the other hand it's the platform Tala will learn more about the borrower.

No one can apply without the app for example through USSD code currently. This is because the app atleast collects enough data from the customer sufficient to evaluate the borrower's credit score.

In this regard, before you can start asking for loans from Tala, as a borrower you'll to start by downloading the app from Google play store.

If you provide insufficient information while creating your Tala account, you'll most probably be denied your first loan. It is therefore advisable to provide true and enough information while using Tala for the first time.

After being given the first loan, the app will still continue to monitor how you use your smartphone and loan repayment pattern. This is again important as the app is preparing your next loan limit.

In situation where you fail to pay the loan, the app will disapprove your next loans till you clear. Tala in all the countries with presence will forward your information for blacklisting with the Reference Bureaus if you fail to repay for more tha three month or more depending on the country of residence.

If a customer pays an active loan as agreed on  time, Tala will offer another loan instantly to that borrower and the cycle continues after on time repayment.

Tala loans are expensive at the start but gradually the interest rate decreases with time. This therefore means long time customers enjoy the benefits of these loans more than new customers.

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Mwabaya Katana

About Mwabaya Katana

Mwabaya Katana is a Finance Online Researcher and Writer.He is the founder of 'Loans Kenya' Blog.

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