The Tala loan app is one of the many loan apps that Kenyans rely on for online borrowing. The app has been in Kenya for over eight years; it initially started as “M-Kopo Rahisi” before officially changing its name to Tala. While it is no secret that the Tala loan app offers loans from Ksh 1,000 to Ksh 50,000, one of its consumers’ many difficulties is unlocking a higher or even the maximum limit. So, do you know how to grow your Tala loan limit from as low as Ksh 1,000 to Ksh 30,000 and even higher?
The Tala loan app was launched by Shivani Siroya in 2014. It currently has headquarters in the United States and operates in Kenya, the Philippines, Mexico, and India. In Kenya, the app is known for its instant loan approval rates, but it stands out because it is licensed by the Central Bank of Kenya (CBK). Tala has been trusted by millions of Kenyans for close to 10 years, establishing itself as one of the most reliable mobile lending platforms in the country.
Tala Loan Limits
The Tala loan app works in Kenya because it is among the few that do not check with the CRB and can give loans of various amounts. To determine your eligibility, the loan app uses your personal phone data (M-Pesa transactions, the information you provide on the app, etc.) and its built-in sophisticated algorithms.
In most cases, the loan amount ranges between Ksh 1,000 and Ksh 2,000 for eligible first-time applicants. The amount you are given with the second loan is now determined by your repayment history. If you make your repayments on time, your amount can grow to Ksh 10,000, Ksh 30,000, or even possibly the higher limit of Ksh 50,000. Most customers’ limits double in two months and quadruple in six months, making Tala one of the fastest-growing loan platforms in terms of credit limit increases.
Who Can Apply for Tala Loans? Any resident citizen of Kenya 18+ years old with a valid ID and mobile number can apply for a Tala loan. The application process is straightforward and requires no collateral or guarantors.
However, while borrowing, remember that Tala charges a daily interest rate starting at 0.3% per day, with rates ranging up to 0.6% depending on the borrowed amount and your credit history with the platform, with an option to repay between 15 and 61 days.
How to Increase Your Tala Loan Limit
According to Tala Kenya’s official website, Early or on-time payments are the best way to raise your loan limit. But because we consider many factors when determining your loan limit, we cannot guarantee that your loan limit will increase, or by how much.
Therefore, if you want to grow your Tala loan limit, the secret to unlocking a higher amount is repaying your loan on time. But remember, as we mentioned previously, the loan app has sophisticated algorithms that consider several things when deciding on your loan limit. Along with early repayments, also consider the following:
1. Maintain Perfect Repayment History
Even though Tala does not check with CRB, ensure that you don’t have a negative credit score. Consistent, on-time payments demonstrate financial responsibility and significantly influence your limit increases.
2. Keep Borrowing Regularly
Maintain an active borrowing pattern to show consistent engagement with the platform. Regular usage combined with timely repayments helps build your credit profile within Tala’s system.
3. Keep Your Tala Loan App Updated
Keep your Tala loan app updated to the latest version to ensure you have access to new features and improved algorithms that might work in your favor for limit increases.
4. Increase Your M-Pesa Activity
Increase your M-Pesa usage activity, i.e., paying bills, using Lipa Na M-Pesa, transferring money, and making purchases, since Tala checks M-Pesa transactions to assess your financial behavior and cash flow patterns.
5. Complete Your Profile Information
Ensure all your personal information is complete and accurate on the app. This includes your employment details, income information, and any other requested data that helps Tala’s algorithm better assess your creditworthiness.
6. Start Small and Build Up
Begin with smaller loan amounts and repay them consistently. This strategy builds trust with Tala’s system and demonstrates your ability to handle credit responsibly before requesting larger amounts.
7. Reach Out to Customer Support
Reach out to Tala customer support for clarifications about your account status or specific strategies to improve your loan limit. Their average response time is less than five hours, making it easy to get assistance when needed.
What to Expect
Based on Tala’s official data and user experiences, here’s what you can typically expect:
- Months 1-2: Your limit may double from the initial amount
- Month 3-6: Limits can quadruple, reaching Ksh 10,000-20,000 range
- Month 6+: With consistent repayment, limits can reach the maximum of Ksh 50,000
Remember that these timelines are not guaranteed and depend on your individual financial behavior and repayment history.
Common Mistakes That Can Limit Your Growth
Avoid these common mistakes that can hinder your loan limit growth:
- Late or missed payments
- Applying for loans too frequently without building a good repayment history
- Providing incomplete or inaccurate information
- Having low M-Pesa transaction activity
- Not maintaining the app’s latest version
FAQs
Can I get a Ksh 5,000 loan from Tala?
Yes, it is possible to get a loan of up to Ksh 5,000 from Tala. However, it is important to note that if you are a first-time borrower, the amount given will range between Ksh 1,000-2,000. To achieve the 5K mark, you need to pay your loan on time and demonstrate financial responsibility.
How long does the application process take?
It takes less than five minutes
What is the maximum loan limit on Tala?
Ksh 50,000
Conclusion
Well, we hope this article has given you a clear idea of how the Tala loan limit works and the process of unlocking a higher loan amount. The key secret to growing your Tala loan limit is making better loan repayments and maintaining consistent financial behavior. If you follow the strategies we have outlined in this article, with time, you can see your loan growing from Ksh 1,000 to the maximum limit of Ksh 50,000. Remember, patience and consistency are crucial – most successful Tala users see significant limit increases within six months of responsible borrowing and repayment behavior.
