Last updated on January 25th, 2024 at 11:46 pm
One of the most popular ways to get a loan in Kenya is through the Tala online loan app. With over 5 million downloads on the Google Play Store, the Tala loan app is the go-to service to apply for and get an unsecured mobile loan in Kenya.
Previously known as mkopo rahisi, the mobile money lending app rebranded its financial service to Tala in 2016. In doing this, they intended to make loan application easier for the end-user, and the way things are going, it’s working.
What Tala online loan app has managed to do is distinguish itself beyond being a loan company by offering and creating instant credit identity. What this helps to achieve is a credit rating of new people looking to apply for a loan for the first time. Furthermore, this allows Kenyans to get money for an emergency without having to fill in a physical form.
Not only that, if you are applying for a loan you will not require a guarantor or security. The technology used by Tala online loan app eliminates all this making the process, easy, quick, and instant.
How to get the Tala loan app on your Android phone in Kenya
Here are the steps to follow
- Make sure your phone is connected to the internet either via data or Wi-Fi.
- Go to the ‘Google Play store’ on your smartphone and open it by clicking on it.
- Once the Google play store has opened, click on the search bar type ‘tala Kenya‘ and press enter.
- Select ‘tala Kenya’ from the results.
- Click on the install button and wait for the tala Kenya app to complete downloading and installing on your phone.
- Open the tala app by clicking ‘open’
For more details on how to complete this Tala loan installation procedure, use this installation guide with pictures and video to saidia you.
How to apply for a Tala loan
Follow these steps
- Open the ‘Tala App‘.
- Select your language.
- Select either ‘I’M New – Create account‘ or ‘Sign In‘.
- Enter your ‘M-Pesa number‘.
- Enter ‘PIN‘ for your number.
- Wait for the main Tala Mobile App Page to load and then proceed with the below steps.
- Select ‘Apply Now‘ and answer the questions that follow [Guide on questions asked by tala]
- You’ll be asked to review the answers you filled in. Carefully go through them and make sure you answered as accurately as possible.
- Now, the app will show you how much you qualify for.
- Choose the loan amount you want to apply for, you can apply between 1,000 Shillings to 30,000 shillings on the app.
- Choose ‘payment schedule’ you are comfortable with either 21 days or 30 days. What are payment schedules?
- Press ‘Send my loan‘.
- Now agree to the terms and conditions and press ‘confirm‘.
- Wait for tala to send the loan.
So how long does it take for tala to approve a loan once you have applied for it using the app? When it comes to approving your loan, tala normally does this within 20 seconds. What enables tala to carry out such a quick analysis and approval process is the use of technology that enables it to create credit identity for its customers. Saidia details how this works here.
How to repay your loan using tala paybill number
These are the steps you need to follow:
- Go to your ‘M-pesa‘ menu
- Select ‘Lipa na M-pesa‘ option.
- Select ‘Paybill‘
- Enter ‘Business number no.851900′
- Enter Account no. [This is the Mobile number you registered on Tala App]
- Enter amount [here you type the loan amount to pay tala]
- Key in ‘M-pesa PIN’ and Press OK
- Confirm that you are sending your money to Tala Mobile.
Now you have applied, qualified, and used your mobile loan from tala and you need to pay it back before the due date. To repay your loan using the paybill, make sure you follow the above steps.
How does Tala work when lending you money?
So how exactly did Tala app know what amount I qualify for? That’s what many people may be asking.
However, there is a method to the efficient and quick way mobile loans are dispersed by this financial service provider directly to your mpesa account. The tala smartphone app prides itself on being able to offer instant credit and help customers have a financial identity.
Instant Financial Identity by Tala loan app
With this financial identity, tala is able to create trust with its customers without necessarily using traditional methods. An example of these traditional methods is, using credit scoring. This is primarily used by the credit reference bureau better known to us Kenyans as CRB.
As a result of financial identity, many Kenyans can qualify for an instant, quick, and affordable loan on Tala. The question is, how does Tala arrive at this financial identity? Well, it is no easy fit, as much as it happens within seconds, the process is very interesting.
How does the financial identity work?
On installing the app on your android phone, a credit profile is created of the user seeking to qualify for a loan. In most cases, Tala app does this by credit scoring the user using their proprietary underwriting models. How this model works is by drawing on up to 10,000 data points per customer to build a new kind of credit score.
Using this credit score, the app can qualify a user for a loan in record time. Once the user applies for a loan, it is sent directly to their mpesa account within 20 seconds. Now that is what you call an instant mpesa loan.
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