Tala Stops Loan Service For Individuals Day After Announcing Ksh600m Kitty

[PHOTO/ COURTESY]

Tala, a mobile loan app has stopped giving loans to its customers “due to the Coronavirus (Covid-19) pandemic”.

In a message to its customers who have already paid their loans, Tala said that they would provide an “update” as soon as they could.

“Due to the Covid-19 crisis, decisions on loan applications will have up to 10 days. We will provide an update as soon as we can. Please stay safe,” said Tala.

Those who were lucky had their loan limits reduced from Ksh30,000 to Ksh5,000 per month.

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On Friday, Tala announced a Ksh605 million rebuild fund to help Kenyans cope with the Covid-19 crisis.

The fund will prioritize existing Tala customers as well as Tala businesses that provide essential services to their communities.

Eligible customers will be invited to apply for the fund’s first new product, a 0% fee, six-month Community Support and a loan of Sh30,000, designed to support businesses that are helping Kenyans recover and rebuild.

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“Businesses, and business owners, who provide essential goods and services to their broader communities will help Kenyans survive this crisis and will be on the front lines leading efforts to rebuild,” General Manager Ivan Mbowa said.

In a statement on Friday, Mbowa said Tala wants to give businesses the ability to get a head start in helping communities to recover.

“We want to give those businesses the ability to get a head start in helping communities recover and rebound. That’s why we are offering select business owners 0% fee Community Support Loans with extended tenures,” he said.

Other mobile loan apps like O-kash have reduced loan limits for their customers.

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