Tala Loans has resumed lending five months after suspending their operations in Kenya.
This was after the Central Bank of Kenya (CBK) withdrew the approvals granted to unregulated digital (mobile-based) and credit-only lenders as third party credit information providers to CRBs.
Users will however have to go through a rigorous ‘vetting’ exercise before getting a loan with Tala.
“Apply now for your pre-approved loan. We’re excited to have you back and look forward to partnering with you to help reach your financial goals,” said Tala in their welcoming message to users.
According to FSD, there were approximately 110 mobile loan apps on the two main app stores from 74 unique developers as of September 2018. As of April 2019, 65 of these apps had been pulled down while 47 new ones developed by 43 unique developers.
It is estimated that there were 92 digital loan apps as of April 2019, but the number has since grown due to new entries into the unregulated market.
Before CBK officially announced he suspension, most of the lenders had already suspended their services, but failed to inform borrowers only telling them to try on a later date.
“With immediate effect, CBK has withdrawn the approvals granted to unregulated digital (mobile-based) and credit-only lenders as third party credit information providers to CRBs. The withdrawal is in response to numerous public complaints over misuse of the CIS by the unregulated digital and credit-only lenders, and particularly their poor responsiveness to customer complaints. Thus, unregulated digital and credit-only lenders will no longer submit credit information on their borrowers to CRBs,” said CBK in a notice.