Mobile-based online lending firm Tala has announced a move to shut down its operations in Tanzania, without giving an explanation.
According to Tanzania Newspaper, The Citizen, the company which has operated in the Kenyan neighbour for five years on Tuesday said it will give more details later.
“We regret to inform you that Tala is currently not offering loans in Tanzania. We appreciate the opportunity to serve you, and we wish our loyal customers continued success in your financial journeys,” read a statement by Tala
But in a rejoinder statement, Tala Kenya dismissed the claims that Tala Tanzania has permanently closed its operation.
“Tala Tanzania has not made a decision to permanently close operations. However, after piloting our credit product in Tanzania, we have paused our lending operations and are undertaking a review of our operations to determine our path forward in the market,” Tala Kenya said in a statement.
The company which currently operates in Kenya, Mexico, India and Philippines, provides fast personalised loans to approved borrowers mainly self-employed as no collateral is required, attracting over 27 million people around the globe.
An official from the company confirmed the announcement posted on social media.
“Yes, we are no longer offering loans in Tanzania. Unfortunately, due to legal reasons, we cannot divulge any more information other than what was communicated on social media,” the publication reported.
The company, however, urged its customers with outstanding balances to repay the loans.
Tala Kenya said it remains a mission-driven global company that has impacted over 4 million individuals with over $1 billion in disbursed loans.
“We are actively working to continue to support financial access in Tanzania,” the statement read.
It added, “Our operations in Kenya continue uninterrupted as Kenya is a critical part of our global business. We are continuing to evolve our product to meet the needs of our 3 million customers here and are also piloting some exciting new offerings in financial education and coaching”.
