What determines my Tala loan?

Have you ever wondered how Tala determines your loan limit? You’re not alone!

We use a computer-based system to provide loan decisions through your smartphone. By using alternative data to underwrite, we have provided loans to over 3 millions Kenyans without requiring the extensive and time-consuming financial records used by traditional banks. And the more we get to know you, the more you can borrow and the less you’ll have to pay. 

Here are some common questions about Tala’s credit system explained: 

How does Tala’s loan process work?  

After downloading the Tala app, you’ll be asked to fill out a short application from your phone. It only takes a few minutes. We then use an automated system to process the information you provide and make a loan decision. Our system is free from human bias and designed to be as fair as possible. As you build your relationship with Tala, the more your limit will grow and the smaller your fees will get. 

What kind of data does Tala look at? 

Tala looks at the answers you submit in your loan application, along with a number of data signals from your phone outlined in our privacy policy. We look at things like income, occupation and more. This helps us determine an applicant’s ability and intent to repay. We only look at the data we need and never use any data you don’t consent to providing when you download the Tala app. 

Is my data private and secure? 

Yes – your data is absolutely private and secure with Tala. We use world-class protections to guard your data. Regardless of whether you qualify for a loan or not, Tala will never share your data with a third party. 

How can I grow my loan limit?  

After you take a loan with Tala, on-time repayment is the biggest factor our system uses to determine your loan limit. As you repay loans and build your relationship with Tala over time, the more you’ll be able to borrow, and your fees will go down to as low as 5%. 

While Tala’s system may seem complicated, it’s really not. The more we get to know you, the better your loan terms will be. This has allowed us to serve millions more Kenyans than previously possible and we look forward to serving millions more.