Tala has increased its loan limit amount from Sh30,000 to Sh50,000 to facilitate provision of timely credit to customers in need of loan amounts large enough to enable them efficiently run their businesses.
The new loan limits will also enable customers fulfill other urgent needs such as paying for school fees or medical care.
According to Tala’s Money March 2022 report, a majority of individuals who borrowed from the platform highlighted the need for higher loan limits, with 78 per cent of the borrowers stating that they need these loans to pay for business expenses, add stock, or fund their side-hustles.
Provide timely credit
“We are a consumer-first company and fulfilling our customers’ most relevant needs sits at the heart of our decision-making during product improvements and development of new services. With the increased limits, we hope that parents can now quickly access a sizable school fees loan and get their child settled in class on time, small traders can pull through stock equaling demand and bread winners can manage to put food on the table each day,” said Annstella Mumbi, Director for Growth at Tala.
Over the past six months, small business owners have increased their borrowing from digital lending platforms to cater to the growth in expenditure among them, pushed by a sharp increase in the prices of inputs amidst high inflation.
Many borrowers have opted for digital lenders because compared to traditional financial institutions, these lenders not only provide timely credit, but also more flexible repayment options. There have also been concerns over increasing cost of credit from traditional financial institutions.
