Last updated on January 25th, 2024 at 11:41 pm
After using the money sent to you by the app, it’s time to do a Tala loan repayment. So, how do you repay your tala loan when it is due?
Here at Saidia we take you step by step to help you easily and quickly make your loan repayment to avoid being in the bad books of the loan application company. Furthermore, a delay in making the payment after being lent the money by Tala Kenya can get you listed with the credit reference bureau (CRB).
As a user, you do not want this to happen because it will affect your ability to qualify for loans from other sources such as banks or even other loan apps.
Before proceeding to make the payment of your loan there are a few things you need to have in order.
First, you need to confirm the amount of money you will be paying to tala. Second, make sure you have enough money in your mpesa account to avoid the transaction not completing. Finally, make sure your mobile phone has enough charge to avoid any disruptions. Especially when in the process of paying back using the pay bill number or through the tala loan app itself. Below is the loan repayment process:
What is the Tala Paybill number
The Tala paybill number is 851900. It is also referred to as the Tala business number. This number is usually used to make direct loan payments to mpesa for your Tala loan. A good thing about this number is that there are no extra charges when you make payment.
Step by step Tala loan repayment process
Follow the steps given below:
- Open the Tala app and Key in your four-digit PIN
- Confirm the amount you need to repay.
- On your android phone, select the ‘SIM tool Kit‘.
- Go to your ‘M-PESA menu‘
- Select ‘Lipa na M-Pesa‘ option
- Select ‘Paybill‘
- At this point enter ‘Business number‘ 851900
- Enter Tala ‘Account number‘ which is your Safaricom mobile number that is registered for m-pesa.
- Enter ‘amount‘ this should be equivalent to the loan you are repaying.
- Now Key in ‘m-pesa PIN‘ and press ‘OK’.
- Confirm that you are sending your money to Pay Bill 851900, account number ” your mobile phone” and “amount” and press OK
- Wait for confirmation SMS
Can you pay the Tala loan in installments?
When it comes to repaying your loan in installments to Tala, the answer is yes, they do allow for it. They allow a user of the app to do this when they have applied for a loan with a 21 day payment schedule. In addition, you can pay in installments to offset the balance of a 30 day payment schedule loan.
This is a question often asked about loan repayment with Tala.
What is a tala payment schedule?
This is the amount of time that Tala has given you to make a repayment on the loan facility that has been facilitated using their app. For example, when you select a payment schedule of 30 days, Tala expects you to service the money lent to you including interest and service fee within 30 days.
When applying for a Tala loan, they give you two options to pay back the money, within 21 days or within 30 days. When you select the 21 day payment schedule on the app, it gives you three scheduled installments of repaying the borrowed amount. These installments happen weekly and have been divided into equal amounts that total original amount borrowed interest and service fee.
Tala service fee
This is a certain amount that is charged by the developers of the app for using the technology to gain a credit advance. In this case, credit advance refers to the quick loan you get once you have qualified for one on the app.
If you need to know how much Tala charges for service fees, check out this breakdown that explains in detail.
However, it should be noted, that this is not to be confused with the rollover fee. A rollover fee is a small penalty charged as a percentage of the loan amount, applied to the money borrowed if you fail to make payments due by the due date.
How to confirm the amount of money due to Tala?
So, before you proceed to pay back the tala loan, you need to know the exact amount of money that you need to pay through M-Pesa. The Tala app has made this very simple, meaning that it is very easy to accomplish this task.
All you need to do is open the Tala app. Check the first screen that appears it will show you your status. This includes how much you need to pay and if the loan is overdue.
What fees and interest does Tala charge?
Well, you will be surprised to learn that Tala does not charge an interest rate on their loans! Instead, what happens is it charges a flat service fee for amounts that it lends to its users. The service fee starts from 15%, however, it can go to as little as 7% for tala customers who borrow multiple times from the app.
This interest rate applies to the 30 day loan offered. For the 21 day loans, the service fee starts from 11% and can go as low as 5%.
So the answer to, does Tala charge interest rates on the money that users borrow from them? Not really, but there is an additional charge to access the service they are offering you.
Let say you want to qualify for a bigger loan, then you will need to increase your limit.
So how do you do this? Well, you will need to be making early loan payments of your previous loan. As much as this will help, this is not a guarantee that you will necessarily get an increase.
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