Tala has announced the introduction of a top-up loan feature in a bid to enhance continuous access to affordable, flexible and convenient credit amid the ongoing credit crunch.
Through a statement on Tuesday, the non-bank lender said customers can now borrow multiple times within their pre-approved loan limit, without needing to re-apply, saving time and reducing the hassle of the repetitive application process.
With this feature, Tala said it aims to serve customers who need support for their day-to-day, budgeted expenses such as school supplies, and utility bills while continuing to help them get through an emergency.
Previously, when customers needed a loan, they had to repay in full and reapply but now customers will have a credit limit to withdraw from as many times as they want, as long as it’s within their due date, without having to reapply.
“This is about giving power of choice and control back to the customer’s financial lives while also inching further into our responsible lending principles.
A customer is now able to borrow a specific amount of money for a particular need without having to use their full credit limit in one go if they don’t wish to.
Every shilling a customer repays is added back to their available credit for them to use whenever they like,” Tala’s General Manager, Annstella Mumbi said.
Since its launch in 2011, Tala says it has disbursed over $2.7 billion of loans to its 8 million customers across Kenya, India, Philippines and Mexico.