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Tala is giving you a new way to borrow through the Tala Credit Limit which is a line of credit that allows you to make multiple top-ups to your credit limit even before you pay in full. This means you can take what you need now and add more later when you need it. If you pay any amount borrowed, it automatically goes back to replenish your credit limit. You get to choose your payment date, and interest is charged per day based on the amount you borrow. If you make an early payment you are able to save on interest.
Borrowing with Tala empowers you to take control of your finances with flexible financial access and the opportunity for financial growth.
We don’t only provide lending products; we strive to be your financial partner and help guide you through the ups and downs of managing your finances. We are here to help you when you need continued access to funds to supplement your income, and we will also be here to help you handle financial emergencies.
Our new Tala Credit Limit has the following features;
Tala customers spoke, and we listened.
Our customers have told us that increased flexibility in choosing when to repay would help them align repayment with their income and financial obligations. They also told us they would like the flexibility to repay sooner to save on interest paid.
Now, Tala gives you continuous, always-on access to money when needed, flexible repayment scheduling, and the opportunity to pay less if you repay early. With Tala, you borrow when you need, repay when you can, and pay less interest when you repay early. It’s as simple as that!
Tala Credit Limit and personal loans have many things in common, but they are not the same.
Both your credit limit and a loan are ways to get money on credit to use for whatever you need.
In both cases, the person requesting the money agrees to return it at some point and pay compensation in the form of commissions or interest to the lender.
Loans are the simplest way to get money on credit and are generally the easiest to obtain, whether online or at a bank branch.
When you apply for a personal loan, you agree to pay the full amount you received on a certain date. For small sums, this is likely to be a one-off payment. For larger sums, you may receive monthly instalments to pay off.
The most important feature of a personal loan is that, once you receive the money, you cannot withdraw more funds without first paying off the debt and going through an application process again.
Unlike personal loans, Tala Credit Limit is a form of recurring credit. That is a credit that is automatically renewed as you pay your balance.
When we grant you a line of credit, we assign you a limit. This is the maximum amount you can withdraw in a period. As you make partial payments, your credit limit is replenished by the amount repaid and you can use that amount again.
Another important feature of your Tala Credit Limit is that you only pay interest on what you withdraw, not on your total approved limit.
Tala Credit Limit is different from personal loans because interest does not begin when your application is approved. Rather, you start paying interest the moment you withdraw a portion of your approved limit.
So you can withdraw money, pay off a portion of your balance or full balance, and access your credit limit to the amount repaid for partial payments or full credit limit on full repayment again and again.
| Tala Credit Limit | Personal Loan |
| You only pay for what you use | Fixed commission for the total amount |
| Recurring access to funds | Can only access cash once |
| Multiple top-ups from your credit limit | Can only borrow once |
Now that you know the difference between a line of credit and a personal loan, we want to show you some characteristics that make the Tala Credit Limit a unique product of its kind.
Tala Credit Limit | Simple Loan | |
You choose the payment date that best suits your needs | ✅ | ❌ |
Continuous access to credit, without having to apply each time | ✅ | ❌ |
Accelerated increase in your credit limit | ✅ | ❌ |
Multiple top-ups to your borrowing | ✅ | ❌ |
If you have an active credit limit you can make as many withdrawals as you want, as long as you have not taken the total that was approved for you. All your top-ups will have the same payment date.
The Tala Credit Limit is designed to give you peace of mind because you don’t need to fill out an application every time you need money. Your credit is always active to withdraw when you need it, as long as you are punctual with your payment dates.
Unlike other lines of credit, when you make an advance payment to Tala, it is applied to the principal first. Since interest is calculated on the remaining principal, making an early payment reduces the total amount you will have to pay by your payment deadline.
Every time you pay off your limit on time, Tala re-evaluates your profile and you have a high chance of receiving an increase to your credit limit. The maximum amount of credit we grant is Ksh 50,000. The more you use your credit and pay on time, the sooner you will be able to access this amount.
Each time you pay off your line in full, you can choose a new payment date, from 15 to 61 days. This date will apply to all your top-ups until you pay again in full and select a new deadline.
The credit cycle is the time from your first withdrawal to the payment deadline you select.
The Tala Credit Limit is a recurring product. In other words, it is a credit that is renewed as you pay your balance.
When you make your first withdrawal after paying off your line of credit, we will ask you to choose a new payment deadline.
The moment we deposit your first withdrawal to your account, a new cycle begins. The cycle will end when your payment deadline arrives.
When you pay off your line of credit, you close a cycle and your line is automatically ready to start again, without having to fill out any applications again.
Tala now gives you control over when to repay. We understand how important it is to align your repayment with your cash flow, so Tala now allows you to select a repayment date between 15 and 61 days.
Our interest rates are as low as 0.3% per day. Select your repayment date to know the total interest, and when you repay early you will save on interest. Make a plan to pay on time. If you miss your repayment date, you will be charged a daily interest until you repay the total outstanding amount until day 61. A one-off late payment interest of 8% will be applied on your outstanding balance if you delay to repay after day 61. Subject to any grace period that might be offered by Tala
Always ensure that you borrow what you need and only what you can pay back on your selected repayment date. Even if you are approved for more money than you need to borrow, you do not have to borrow the total amount. You will still have access to your total limit when you need it.
For example, If you have access to Ksh. 10,000 but only need Ksh. 5,000; we recommend you borrow only Ksh. 5,000. With Tala Credit Limit you can top up the 5,000 balance even before you repay the previous balance if it is before your selected due date.
Always ensure your repayment date sets you up for a stress-free repayment. You could, for example, align it with your income, such as your salary, expected business income or allowance, etc. By aligning your repayment with your salary, you will ensure you can repay on the date you selected and keep your interest to a minimum.
For example, if you receive your income on the 30th of each month, then you should target to repay immediately after the 30th.
Your selected repayment date also determines how much total interest you will be charged.
You also have the option to make a partial payment or a full early repayment should you have the funds available.
Tala will send you helpful tips and reminders to ensure you know when to repay. Ensure that you read our SMS messages to avoid missing any critical updates.
We also recommend keeping reminders in your calendar to stay on track.
Updating your Tala app to the latest version will allow you to enjoy the benefits of Tala’s new flexible Credit Line. (To check if you have the latest version of Tala go to the Google Play store, search for the Tala app and it will show you if you need an update or not.)
Yes! With the new Tala Credit Limit, you can now borrow multiple times as long as you still have funds available in your limit and it’s before your selected repayment date.
Whenever you make a repayment, the funds are automatically made available for you to borrow again. No need to reapply.
No. Once you make your first withdrawal you select your payment date. Every top-up you make before you repay the full amount will be due on the same selected due date. To start a new cycle, clear your full balance and your credit limit will be available for you to borrow again and you can select a new payment date.
You will receive your funds in your Mpesa account on the phone number you used to register on the Tala app.
No, you will receive your total cash amount in full. Tala will not charge you any fees to transfer the money to your MPesa wallet.
The best way to grow your Tala Credit Limit is to repay on or before your repayment date consistently. Over time your limit will grow. Your first withdrawal with Tala is only the initial stepping stone!
Tala Tip: Most Tala customers double their Tala limits in only two months. You can achieve that too!
Unfortunately, you cannot adjust your repayment date on the Tala App once you have disbursed your funds. We encourage you to repay on your repayment date to keep your budget. If you exceed your repayment date, you will be charged a daily interest rate until the expiry period. A one-off late payment interest fee of 8% is charged on the outstanding balance after this.
Yes, you can make payments ahead of schedule! Paying what you owe earlier means that you will pay less in interest and save more!
Yes, you can pay in installments until you repay your outstanding balance in full.
When you make a partial payment, the amount of daily interest you owe will decrease. Tala will now charge daily interest based on your current outstanding balance.
Many customers find it helpful to make small partial payments early to reduce their burden and make it easier to repay in full ahead of schedule.
You will save on interest if you repay earlier than your repayment date because interest is charged on a daily basis. Open the Tala App to see how much you can save by paying early.
Yes, it is possible to repay using a different number as long as you enter the phone number for your registered Tala account as the account number.
The repayment date is the date you are targeting to repay, and you can choose between day 15 and day 61 from the day you withdraw. The date you select lets you know the interest you will be charged. We encourage you to choose a date to repay that aligns with your salary, business income, or another form of income to make it easier for you to repay.
If you do not pay by your repayment date, you will be charged a daily interest fee until day 61 from the date you borrowed.
A one-off late payment interest fee of 8% of the outstanding balance will be charged after this period elapses.
For example, if you withdraw on October 1st, you can pick any day between October 1st and November 30th as your repayment date. Say you chose October 30th as your repayment date. We encourage you to ensure you repay on this selected repayment date to stay within your budget.
If you do not repay on October 30th, additional interest will be charged daily on your balance. If you don’t pay by day 61(in this case by November 30th) you will be charged a one-off late payment interest of 8% on the outstanding balance, subject to any grace period offered by Tala.
You should strive to pay on your selected repayment date. If you miss it, you will be charged additional interest daily until you repay. You will therefore accrue additional costs.
Paying on time will ensure you keep your budget and grow your limit. You can borrow it again immediately after.
We understand that sometimes unpredictable circumstances can prevent you from paying on time. If you have trouble repaying, we encourage you to make a partial payment and contact us as soon as possible.
You can reach us via the following channels:
When the going gets tough, Tala is there for you. Our customer care agents do their best to work with you to find a fair resolution. The most important thing is to reach out early if you have questions or concerns about repayment and keep an open communication line.
We strongly encourage you to select a date to repay that aligns with your income and do your best to meet that date; if you miss it, still do your best to repay before the 61st day. After 61 days and an additional 7-day grace period, you will be charged a one-time 8% late payment interest fee on your outstanding balance.
Tala will only charge you a one-time late payment interest of 8% if you have not made your full repayment after day 61. The late payment interest is based on your principal balance on the 61st day.
Following the enactment of the Finance Act 2022 by the Government of Kenya to introduce a 20% excise duty on fees charged by digital lenders effective 1st July 2022, the interest charged is subject to excise tax as applicable, and this shall be reflected in your borrowing summary. We encourage you to pay on time.
We assure you that your information is confidential and secure. We respect your privacy and will never contact your friends and relatives. The email address, the primary phone number, and the optional alternate phone number you register with Tala are the only contact information we will use, so kindly ensure they are active and updated.
Tala aspires to be your most reliable financial partner. With Tala Credit Limit, you now have continuous access meaning:
With the Tala Credit Limit, you only apply once and have continuous access to funds. Once you repay your outstanding balance in full, go to the Tala app and borrow again.
Yes, you can now make multiple top-ups to your borrowing even before you have repaid what you owe
Tala is always available to help you. If you have any questions or enquiries you can reach us via the following channels:
Chat with us via Tala In-app Chat