Why Do Kenyans Use Tala App to Borrow Loans?

Have you ever wondered why so many Kenyans prefer to apply for a loan through Tala? Today we have your answer. Take your time and relax, so you can find out why Kenyans like to borrow a loan through Tala.

Tala is a mobile phone lending company that has been very popular in Kenya since its launch in 2017.

Why Do Kenyans Use Tala App to Borrow Loans?

Most Kenyans like to use Tala because, it has grown to be able to lend more than ten million shillings, and this is only available to those who pay on time.

Tala has announced it aims to increase its market share by offering a flexible loan repayment option to its 3 million Kenyan consumers.

This comes on the heels of a Kshs 16.1 billion fundraising round raised by the digital mobile lender in October last year to expand its lending in four regions, including Kenya, the Philippines, Mexico, and India.

Tala Country Growth Manager Annstella Mumbi said during the introduction on Tuesday that the new product, branded Jichagulie Due Date, is personalized to a customer's financial requirements, a move that is intended to improve financial inclusion in the country.

This product was created in partnership with our customers through a thorough user research methodology. Borrowers will be able to select the due date that works best for them, rather than Tala, with this new flexible credit option. And this is only the start. This year, we will be bringing numerous new product modifications to allow Kenyans additional financial access as well as the confidence to achieve their financial goals, "Mumbi added.

Since its debut, the digital lender has granted loans of Kshs 270 billion to over 6 million consumers across four countries, with Kshs 100 billion disbursed in Kenya alone.

While speaking at the event, ICT and Broadcast Chief Administrative Officer Maureen Mbaka stated that the rapid expansion of the digital economy has been critical in driving financial inclusion in the country, given that formal financial inclusion has risen to 82.9 percent, compared to 26.7 percent in 2006, according to the Central Bank of Kenya's latest FinAccess Household Survey.

"Financial inclusion is central to our purpose." To achieve these objectives and continue on our journey to a digital economy, we must create collaborative ecosystems that support digital transactions on a national, regional, and global scale. "This is the premise that guided Kenya's digital economy plan," Mbaka explained.

Despite the CBK Amendment Act 2021, which restricts digital lenders, Tala hopes to develop more customer-centric solutions aimed at credit and cryptocurrency in the future.

Nicola Muriuki, Senior Legal Council in Kenya, said: "We believe that proper implementation of the legislation will ensure an ongoing flow of responsible credit to Kenyan consumers and small businesses as we pursue our common goals of advancing a much safer operating environment for Kenyans and cementing Kenya's global leadership in financial inclusion and leadership." said Nicola Muriuki, Tala Senior Legal Council in Kenya.

Customers will also benefit from decreased payback costs and an increase in loan limits during the loan term with the Jichagulie Due.