With the cost of living rising very sharply in the past year due to an economic downturn, you might be forced to borrow a larger and an instant loan, and Tala Loan app is your friend in need; but the question is, how can you increase your Tala loan limit?
First, since Tala provides unsecured loans, it relies on your credit score and repaying capacity depicted on the transaction flow in your Mpesa account.
You can download the Tala app on your phone, register to find out if you qualify for a loan to cover your emergencies.
What’s the maximum loan in Tala?
The maximum Tala loan limit is Ksh30,000, which is accessed after successfully repaying your past loans on time without fail. On the other hand the minimum Tala loan amount is Ksh1,000.
How to know your Tala loan limit
Tala uses automated systems to determine your loan limit. After downloading and registering on Tala by providing the required personal details and work information, the Tala app will scan through your transactions, SMS, contacts and location and inform you of your limit on the dashboard.
Can you get another loan after repaying Tala?
Yes. You instantly access another loan when you clear the outstanding balances within the repayment period. Chances of getting a bigger loan than the previous one will be higher.
Ways to increase your Tala loan limit
This piece will educate you on what to do to increase your Tala loan limit. Some of the tips include:
1. Show your money
Tala loan app monitors the cash flow in your account. Transacting much money on your account boosts confidence with Tala as you will be enhancing your repayment power. Your loan limit will be revised to a higher amount when there is a consistent flow of money in your Mpesa account.
2. Keep your sim card active
Be reachable on phone and SMS because Tala uses these data to evaluate your loan eligibility. You should not delete texts, especially Mpesa messages, and always pick up your phone when called. This erases the suspicion that you might have other pending loans with multiple lenders.
3. Declare additional sources of income
Always update your Tala profile to match your current business activities. Declaring your additional sources of income boosts your Fixed Obligation to Income Ratio (FOIR), a metric used by Tala to assess an individual’s loan eligibility.
It is also a theoretical way of underpinning your repayment capacity.
4. Do not delete Tala app!
Deleting the Tala app is a method of cannibalizing its ‘research’ capabilities because it assesses your phone for consideration in loan limits. Uninstalling the app means it can no longer access your financial history, and this will bar you from getting a loan increment.
5. Raise your credit score
A credit score is an important tool used to gauge your financial health by lenders. A good credit score reflects a responsible lender, and you will get a higher loan limit on Tala.
To boost your credit score, make sure you pay all the outstanding bills on time and never borrow your maximum. You should also keep your accounts open and deal with delinquencies.
6. Update the Tala Loan app
Updating the Tala Loan app will enable you to access the latest features on the new app, which can work for you by elevating credit assessments. Most of the time, the older app usually fails after the up to date version is released to the public and one cant access Tala services with the latter.
Tala app is available for free both on Android and Apple application platforms.
7. Refer your friends and family
Have you ever thought of earning with Tala? When you invite friends to register with Tala, take a loan and successfully repay, you will receive a bonus coupon of Ksh500, which will be added to your loan limit.
8. Add a ‘co-borrower’
When applying for a Tala loan, you will be asked to fill in the names and contact details of persons with whom you share a close relationship. Consider listing people with active phone numbers and a good credit score to boost your loan limit.
These people are always contacted when you fail to repay your loans.
9. Make timely loan payments
Beating loan timelines will not only improve your credit score and cut you off from penalties but also increase your loan limit. Repaying the loan on time indicates that you are trustworthy and worthy of a higher loan limit.
Tala offers a 30-day and a 21-day loan with the flexibility of clearing the debt before the due date.
10. Negotiate with Tala
Do you think your financial difficulties are credible and can convince the Tala team? Then you can reach them at [email protected] with the details of your request. Tala often responds within a day with information on whether your ‘cry’ was discernible for consideration of an increased loan limit.
Bottom line
If you stick to the above tips, you are likely to get an increment in your loan limits and qualify for a bigger loan that merges your desired use. Remember to use your loan wisely by investing in businesses or other income-generating ventures. Pay your loans on time to boost creditworthiness.
Now read: Top 10 Businesses You Can Start With Ksh100,000 in Kenya
