Tala is a popular mobile loan app in Kenya offering quick and convenient access to small loans. Here's a breakdown of its pros, cons, and user insights to help you decide if it's the right choice for you:
Tala facts
- Founded in 2014, operating in Kenya and other African countries.
- Licensed by the Central Bank of Kenya.
- Offers quick and convenient access to small loans through their mobile app and USSD code.
- Primarily targets unbanked or underbanked individuals.
Loan Features
- Loan amounts range from Ksh 500 to Ksh 15,000.
- Repayment periods range from 7 to 30 days.
- Interest rates vary based on loan amount and repayment terms, generally lower than some competitors like Zenka.
- Application process is fast and straightforward, with quick approval decisions.
- Offers flexible repayment options, including bi-weekly installments.
Financial Performance
- Raised over $130 million in funding from various investors.
- Disbursed over 10 million loans in Kenya alone.
- Claims to have a high loan repayment rate.
Tala Pros:
- Fast and straightforward application process: Apply for loans within minutes through the app or USSD code, with quick approval decisions.
- Wider loan range than Zenka: Loan amounts range from Ksh 500 to Ksh 15,000, catering to various needs.
- Generally lower interest rates than Zenka: Interest rates vary based on the loan amount and terms, but are typically lower than Zenka's high rates.
- Longer repayment periods: Repayment periods range from 7 to 30 days, offering more flexibility than Zenka's short terms.
- Positive user reviews: Users appreciate the app's convenience, fast approvals, and helpful customer service.
- Established reputation: Tala operates in several African countries and has a positive track record.
Tala Cons:
- Interest rates can still be high: While lower than Zenka, interest rates can still be significant, especially for smaller loans and shorter repayment periods.
- Shorter repayment periods than some alternatives: Compared to banks or apps like Branch, repayment periods are shorter, putting pressure on timely repayment.
- Potential for over-borrowing: Easy access to credit can tempt some users to borrow more than they can afford.
- Eligibility requirements: You'll need a valid Kenyan ID, active mobile phone number, and good credit history to qualify.
User Insights:
- Positive: Users praise the app's convenience, fast approvals, and helpful customer service. Many appreciate the wider loan range and lower interest rates compared to Zenka.
- Negative: Some concerns involve hidden fees or unclear communication regarding charges. Others mention challenges with customer service responsiveness at times.
- Overall: Reviews are generally positive, highlighting the app's usability and accessibility for quick financial needs. However, concerns regarding responsible borrowing practices and interest rates remain.
Read also: Best Loan apps in Kenya
Verdict
Tala can be a convenient option for small, urgent loans if you understand the terms, can repay within the timeframe, and manage the interest rates responsibly. However, carefully consider alternatives like savings or bank loans with potentially lower rates and longer repayment periods. Remember, responsible borrowing is crucial. Only use Tala as a last resort if other options are unavailable.