Find out the whole truth about whether you can borrow money again from the Tala App after settling your loan, even if your payment was delayed.
Some Filipinos have a habit of borrowing money from neighbors when they are short on cash. However, borrowing comes with responsibilities that must be kept in mind and fulfilled. Borrowing here, borrowing there, it seems endless. When will this cycle of debt finally come to an end?
With the rapid advancement of technology, numerous mobile lending apps have emerged globally and begun operating in the Philippines, allowing users to borrow money simply by applying through the app and completing a selfie verification.
With the Tala Loan App, for instance, once your initial loan, usually around ₱2,000, is approved, you are required to repay it on the due date.
After the due date, there is a 7-day extension to give you time to make the payment. If you fail to pay after that 7-day grace period, an additional penalty of 5–8% will be applied to your existing loan balance, including the interest. If you still don't pay, you will be contacted to settle the amount. Don't be rude, be polite when answering the call. You’re the one who borrowed the money, so getting angry yourself is uncalled for, or else I might just feed you to "Lolong the Crocodile." It's a joke only.
I took out a loan with a due date in August 2019, but my repayment was delayed by nearly five months because our home was affected by a flood. I eventually settled the balance in January 2020, but unfortunately, it was marked as a late payment, and my reloan applications have been rejected since 2020. What matters to me is that I was able to pay it off and have no outstanding loan with the Tala lending app.
What are the consequences of not paying on the due date?
Could you go to jail?
Do collection agents use intimidation tactics or harassment?
Tala didn't harass me when I failed to pay on time, and I still had access to the app for repayment even though I was delayed. An agent told me to keep the app installed, suggesting there might be an account update that would lead to re-approval. However, it has been a long time since 2020, and I still haven't been approved. This implies that Tala no longer wants to deal with me because of my past delayed payments.
On May 18, 2023, I messaged an agent via the app to ask about the new interest rate for 2023. Unfortunately, the agent replied that the contact information I was using was not linked to my Tala account. I wondered why it wasn't connected, considering I still have access to the app even though my loan application was rejected following a late payment. As far as I know, if a user can log in and send a message, they should certainly know that I have an account in their system, right?
An agent wanted me to re-upload required documents, such as a valid ID, so they could access my account, but I didn't bother doing so, as it would have been pointless since my loan application had already been rejected, even though I have no outstanding loans. Most likely, if I'm not mistaken, customers with delayed or late payments have their accounts unlinked to prevent them from availing of loans again. In fact, they have full control over customer accounts through their system. I don't believe loan application approvals are purely system-generated, and I’ve found peace of mind knowing that I am fully paid.
Now you know the whole truth about borrowing from the Tala app. Think it over carefully before you borrow, and consider whether you can make the payment on the due date. No one goes to jail over debt, but "Karma" eventually catches up with you.
If you fail to pay, you will be reported to the Credit Information Corporation (CIC), the Bangko Sentral ng Pilipinas, and other lending institutions. This will result in a bad credit history, making it highly likely that you won't be able to secure loans from other lending apps in the future. You won't go to jail over the debt, provided you inform the collection agent that you are unable to pay due to a serious problem. The important thing is that you do not deny the debt to them.
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