Tala To Allow Customers To Choose Due Date For Their Loan

Imagine taking a loan from someone and they give you the freedom to choose when you want to pay back. That sounds great. Right? Most people give loans with terms on when the loan should be paid, failure to which penalties start to apply.

When Covid-19 first hit the country, it messed up lives. Virtually every sector was hit. Businesses shut down en masse and more than 2,000,000 people lost their direct source of income. Despite the vaccines being in circulation, the pandemic is still a threat.

In the face of a pandemic and in the face of an economic meltdown, the only way many Kenyans survived was through micro-loans from such platforms as Tala. Platforms such as Tala are preferred because they are fast, accessible, and need no security.

For years, Tala has been Kenyans’ favorite platform to go to for micro-loans. The platform has not only helped individuals but small businesses too. Tala is among the giant micro-lenders in Kenya that has been coming up with new offerings often.

Towards the end of 2021, Tala launched the piloting Jijenge na Tala Rebuild Fund Business Program to help the hard-hit micro, small and medium-sized enterprises to build back better post-covid 19 as the country enters the recovery stage.

Read More: Tala Sets Aside A Ksh 2 Million Pilot Grant To Help Kenyan MSMEs

To give Tala customers the freedom of choosing when they should pay their loan, Tala has launched a new product that allows customers, upon taking the loan, to choose the period within which they are comfortable paying back whatever they owe.

“We have released a new product feature that allows Kenyans to choose their own loan due date, from 15-61 days. By putting the power of choice in everyone’s hands, our borrowers can perfectly align their loan due date with their payday or salary date. Now you can Jichagulie due date,” said Tala in a statement.

According to Tala, the move to allow customers to choose when they want their loan to be due will give them an opportunity to plan themselves and concentrate on other productive activities than getting worried about a date they have no control about.

Read More: Tala Boss Calls For The Support Of MSMEs In Kenya

In helping SMEs, Tala Managing Director Mr. Ivan Mbowa said there is a need to support and said one way was giving them access to credit and the freedom to choose when to pay.

“In Kenya, MSMEs contribute about 40 percent of the country’s GDP and employ about 86 percent of the population. It is, therefore, one of the major sectors that should be supported by all means,” said Mr. Mbowa.

“We understand the pivotal role that MSMEs play to oil the wheels of our economy. They, however, remain disproportionately underfunded and with no financial assistance in most cases.

Today more than ever, we are keen to provide these enterprises with a boost to help them get back what they have lost during this and the past year,” he added.

“The future belongs to MSMEs and we need to help them position themselves for success as we hopefully begin to see an upward economic trajectory,” concluded the Fintech boss.

Read More: Tala Sets Aside Grants To Help Kenya’s Micro, Small, And Medium Enterprises

People take cash from Tala for various reasons such as:

Rent: Sometimes rent is due and you have nowhere to turn because everyone seems to be brought. The easiest place to run is to Tala where cash is given and no security is needed.

Medical bills: nobody knows when they or their family members will fall sick. Sickness just comes, whether you want it or not. And when it comes, one has to spend and that is when Tala comes in when you do not have enough cash.

House expenses (shopping): Anyone with a family will tell you that shopping is as necessary as life itself. And sometimes everything in the house ends without warning and at the time that you have no cash.