Applying for a short-term loan from licensed loan apps like KwikPay Credit (Trafalgar) is easy, but approval of such loans will depend on meeting the simple requirements and conditions of the requested loan.
Despite the simplicity of the Kwikpay Credit loan app and being one of Nigeria’s best loan apps, some loan applications are still declined and rejected. Identifying the major reasons for the loan rejection may be difficult for most applicants.
Here are some of the key reasons for the rejection. We realise that such rejection can be disappointing, especially when the loan request is needed in an emergency, hence this write-up to understand the process and how to move forward.
1. You didn’t meet the basic requirements
Every lender sets its requirements, but most look for a few basic criteria, such as minimum age requirement (typically 18), valid bank account, mobile number, and BVN. It is important that you check the basic requirements and ensure you can meet them before applying.
2. Your application was missing information
A lender might automatically reject your application if it’s missing key information or documents. Make sure to read over your application before you submit it, as well as upload any supporting documentation that the lender requires. You might also call KwikPay Credit or any of the registered loan mobile apps (digital lenders approved and registered by the Federal Government of Nigeria, FCCPC) directly to double-check that it received everything it needed to process your application.
3. Your Credit Reports from Credit reference Agencies licensed by CBN
Your credit report from the Licensed Credit registry acts as one of the key areas for lenders when making their final decision. The report shows your personal information, including your name, your current and previous addresses, employers, etc. It will also include data regarding your credit history, for example, late payments, credit accounts, and recent loan inquiries, as well as other general information that a lender will find useful.
Example of Report from CBN-Licensed Credit Reference Agency
4. Your income was insufficient or unstable
Along with looking at your current and previous credit history from the registered credit reference agencies in Nigeria, lenders and loan apps like KwikPay Credit also examine your income to determine whether you’ll be able to pay back your loan. Essentially, they want to make sure you can afford your monthly payments and won’t default on the money you owe. We usually request your 3-month bank income statements. If we decide that your income is insufficient for the amount you want to borrow or based on other loan obligations, or if your income appears unstable from month to month, the lender may reduce the loan approved for you or might reject your application outright.
For example, if you try to take out a personal loan from the KwikPay loan app or online for N100,000, knowing that you don’t earn enough salary or income to afford the monthly loan repayment. Since you’re requesting an unrealistic amount, we or other lenders will most certainly deny you. Read more on How to Effectively Manage Loan Repayments
5. You’ve Applied Too Many Times
Despite being far from the truth, many people believe that applying to multiple lenders and creating a number of applications will increase their chances of being accepted. However, this can be extremely harmful to both you and your finances, since it could reduce your chances of acceptance. Whenever you submit a new application, the lender will conduct a credit check on your finances. The credit reference check will show how many loan apps or companies you have applied to within a short time, and if it is shown that you applied to many loan companies within the same period, your chances of getting the loan approved might reduce.
As a result, before applying for a loan, you should familiarise yourself with how lenders operate and the risks involved.
Conclusion
Loan rejection can be frustrating, but understanding the reasons behind it helps you take proactive steps to improve your chances. By maintaining a good credit record, providing accurate information, and demonstrating steady income, you can increase the likelihood of approval.
At KwikPay Credit, we’re committed to making loans accessible while promoting financial responsibility. Apply today with confidence and let us help you meet your financial needs.