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Money lending app Tala shuts down its operations in Tanzania

US-based mobile money lending app Tala has shut down its operations in Tanzania, without giving a clear explanation.

According to a post on its Twitter handle dated September 6, 2019 the company only gave alternative ways for its customers to clear their outstanding balances.

“We regret to inform you that Tala is no longer offering loans in Tanzania. We appreciate the opportunity to serve you, and wish our loyal customers continued success in your financial journeys. You can use the following paybill number to pay outstanding balances,” read the tweet.

Meanwhile, Tanzanian newspaper, The Citizen, has reported that the company is expected to issue a statement later on explaining the reason behind the closure.

“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 Citizen quoted a source within the company.

Apart from Tanzania, Tala, which was founded in 2011, also has a presence in Kenya, the Philippines, Mexico and India.

In Kenya, the app offers subscribers soft loans ranging from Sh1,000 to Sh50,000.

In Kenya Tala has more than four million customers who take out three to six loans a year at a 10% average monthly interest rate.