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Tala is a California-based finance application in Kenyan market that provides credit through your mobile phone. All with low charges and an easy repayment schedule. Tala disburses loans via M-pesa of up to Kshs.50, 000. It was formerly known as Mkopo Rahisi before it was upgraded and rebranded to Tala. With the latest version you can see new features such as cheFFckingFF your credit limit and also seeing cFFustomers’ success stories. Once you download Tala you are asked to scan your M-pesa SMS and other information for verification of your identity and creditworthiness. This ensures that you are given a fast loan.

Eligibility for the loanThe Android app collects data from the applicant’s mobile phone such as call patterns and mobile money history to build a credit score. The average loan is Kshs.10, 000 but first time applicants are given Kshs.2, 000 and have to build their profiles over time. Process of getting the Tala loanDownload and install Tala app from Google playstore.Link app to your Facebook account.Answer a few personal questions (loan qualification is dependent on the feedback you give on the questions).The loan repayment mode is via M-pesa paybill number 851900.Security, Interest and Time limitTala loans do not require any security but the loan increment eligibility depends on your repayment behavior of previous loans.Tala disburses loans of up to Kshs.50, 000 and charges a one-off processing fee of between 5 to 15 per cent depending on your profile and the size of the loan that must be repaid up to in six months. If you don’t repay your loan in time you are blacklisted. That means all non performing loans (more than 90 days overdue) will be listed as provided under section 18 of the Credit Reference Bureau Regulations 2013. Loan default penalty is restriction from qualifying for future loans. 

 Advantages and disadvantagesOne of the advantages of Tala loan s that if your loan is overdue and you do not want to be blacklisted, Tala offers a notification to all their customers with loans that are overdue by more than 60 days so that they can repay by 8th July. As long as you repay your loans and maintain a relationship with Tala for 6 months you are eligible for a good report, even if you have been late before. Secondly once your qualified for a loan you a given a fast loan meaning the loan is disbursed in a matter of minutes making Tala a reliable way to get urgent money. Lastly Tala gives you enough time to repay your loan.Some of the disadvantages are that Tala has a very interest rate compared to other mobile loan operators. Secondly the interest varies from one customer to another depending on your creditworthiness making it very hard to estimate your loan interest rate.RecommendationsTala is recommendable to anyone who has surety that you can qualify for the loan and needs urgent money. Due to the varying interest rates you should be careful while considering on taking loan with Tala. References https:/