Tala sees growth with launch of flexible loan repayment plan

Tala has announced plans to consolidate its market share by introducing a flexible loan repayment plan for its 3 million customers in Kenya.

This comes on the backdrop of a Kshs. 16.1 billion funding the digital mobile lender raised in October last year to boost its lending in four markets mainly Kenya, Philippines, Mexico and India.

Speaking during the launch on Tuesday, Tala Country Growth Manager Annstella Mumbi said the new product dubbed Jichagulie Due Date is tailored towards a customer’s financial needs, a move that is expected to further deepen financial inclusion in the country.

“This product was developed after a rigorous user research process in collaboration with our customers. This new flexible credit option will give borrowers the power to choose the due date that works best for them, not Tala. And this is just the beginning. We will be introducing many  new product changes this year to give Kenyans more financial access as well as the confidence to reach their financial goals,” said Mumbi.

According to the digital lender, since inception, it has disbursed loans amounting to Kshs. 270 billion to more than 6 million customers in the four markets, of which Kshs. 100 billion has been disbursed in Kenya alone.

ICT and Broadcast Chief Administrative Officer Maureen Mbaka while speaking at the event said the rapid expansion of the digital economy has been crucial in the driving financial inclusion in the country, given that formal financial inclusion has risen to 82.9% compared to 26.7% in 2006 as per the latest FinAccess Household Survey by the Central Bank of Kenya.

“Financial inclusion is at the core of our mission. To reach these goals and follow our pathway towards a digital economy, we must build collaborative ecosystems that facilitate digital transactions on a national, regional and global scale. This is the rationale that informed Kenya’s digital economy blueprint,” said Mbaka.

Despite the CBK Amendment Act 2021 putting a leash on digital lenders, Tala expects to introduce more customer-centric products targeting credit and crypto going forward.

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

With the Jichagulie Due, customers will also enjoy lower repayment fees while increasing their limit during the loan tenure.