Mobile lending App Tala has launched a new feature dubbed ‘top-up loan’ that will allow its users to borrow multiple times until they exhaust their pre-approved loan limit.
Through the ‘top-up loan’ feature, lenders will not be required to reapply for new loans, saving them time and reducing the application process.
The firm said that the unveiling of the new solution seeks to support clients in running their day-to-day activities for school supplies and utility bills, among others.
“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,” Tala General Manager (GM) Annstella Mumbi said.
“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,” Mumbi added.
Previously, when customers needed a loan, they had to repay in full and reapply. The top-up loan feature enables customers to have a credit limit to withdraw from multiple times as long as it’s within their due date, without having to reapply.
“At Tala, we are cognizant of the current financial challenges being faced by Kenyans at all levels of the social strata and we want to work for and with Kenyans to help erase credit barriers that have for so long cut off customers, including small businesses from their survival life raft that is access to affordable credit,” the GM stated.
Tala says it has disbursed more than Ksh 405 billion ($2.7b) in digital loans to iits 8 million customers in Kenya, India, Philippines and Mexico.