Short answer: If you fail to pay your Tala loan on or before the due date, you will be charged late payment interest in addition to the total payable amount related to the loan. If you default on your loan, Tala may take legal action to recover the total payable amount through available legal procedures.
Long answer: Tala is a fintech that offers mobile loans to underserved markets like Kenya. When you take out a loan from Tala, you agree to pay back the total payable amount on or before the due date. When you request a loan from Tala, you will be provided with a Cover Page that outlines the specific terms and conditions of the loan, including the loan amount, interest rate, due date, and other important details. It is important to carefully review the Cover Page before accepting the loan to ensure that you understand and agree to the terms and conditions.
The due date is called the Max Due Date, which is either the date set forth on the Cover Page or 61 days after the Disbursement Date if the date is not set forth on the Cover Page.
If you fail to pay the total payable amount on or before the Max Due Date, you will be required to pay late payment interest on top of the total payable amount. The late payment interest is in accordance with Clause Seven of Tala’s terms and conditions.
Legal Action When You Fail To Pay Your Tala Loan
If you default on your loan, Tala may take legal action to recover the total payable amount through any available legal procedures. This means that Tala can use legal means to collect the debt, such as filing a lawsuit or using debt collection agencies. It is important to note that defaulting on a loan can have a negative impact on your credit score and financial future. This may include suffering a reduction on your loan limit on the app or denial of mobile loans altogether.
To avoid late payment interest and defaulting on your loan, make sure to pay the total payable amount on or before the Max Due Date. You can make payments through any of the means established by Tala for such purpose and identified to you in the Tala App. If you are unable to make your payment on time, it is best to contact Tala to discuss your options and avoid defaulting on your loan. This includes working out a repayment plan when or if Tala representatives contact you.