What Happens If You Overpay Tala, Branch

It is possible to make an overpayment to Tala or Branch or even any other mobile money lender via Mpesa.

While paying the loan, you might find that you dialed a different value. The most incidents happen while dialling the digit zero . Instead of 1000 you can easily erroneously dial 10000.

This problem though looks like its solved. This is after most loan apps integrated Mpesa Express. The technology just asks for your Mpesa PIN and pay from a pop up.

Sometimes it can take too long to receive a confirmation message that you've successfully paid from Mpesa and or the loan app. This can prompt the borrower to make another payment instantly to beat the time for repayment for last minute guys.

Later, you find that all the two transactions were sent successfully, meaning you paid the loan double.

So in such cases what exactly will happen if you were paying branch or Tala loans?

For both Tala and Branch, the excess amount will be deposited into your account and will be visible to you.It will never get lost.

Before, both the apps used to refund the excess money by reversing it to your Mpesa account. Later, Tala and Branch decided to retain the cash in your account.

What does this mean? Tala and Branch meant that, if you needed your money, take a loan and the excess money will automatically be used to settle the loan.

This is something some kenyan borrowers are not comfortable with at all. But why?

Take for example you overpay ksh 1000 to Tala or Branch.  To get your 1k you'll need to take a loan of ksh 1000. Tala or Branch will then charge a 10 % of the ksh 1000 you take which means you'll have to pay ksh 100 as interest. What for?

Anyway for the purpose of this article, you now know what will happen if you overpay Tala or Branch apps.


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