Kwaba Blog

6 Reasons Why Your Loan Application Was Rejected

loan application rejected kwaba

If you’ve been turned down for a rental loan from us—there’s no need to panic. Having your loan application denied might feel like a personal rejection. But the truth is, it’s something that can happen to anyone.

At Kwaba, we have set minimum qualifications for all loan approvals. If you are not able to reach any of our specific qualifications, your application may be rejected. It’s important to note that just because your loan application was declined this time doesn’t mean it has to be your last chance. In fact, there is a lot you can do to improve your odds of being approved but it starts with knowing what you might have done wrong. Here are 6 common reasons why we reject applications;

Bad credit history

When it comes to giving loans, credit history is the most important factor we consider. Your credit history is the primary way we evaluate how likely you are to repay (or default on) a loan. If you’ve had credit issues in the past (e.g., past due accounts, bankruptcy) you may not meet Kwaba’s minimum requirements.

High debt-to-income ratio

If your credit history is good, and you have consistently made all your monthly payments, your application might still be denied. We can’t approve a loan for you if your debt-to-income ratio (the sum of all your debts divided by your monthly income) is too high. In order to prevent you from drowning in debt, it is important to maintain a healthy balance of debt to income.

If your DTI is too high, paying your current debts will help improve it, increasing your chances of approval.

Unstable employment history

Generally, we want to see that your source of income has been consistent, from that we can deduce that it will remain constant moving forward. This means if you’ve recently changed jobs (in the last 30 days ), or have freelance work from multiple employers, it might be difficult to calculate your income.

If your income fluctuates because you’re self-employed or do seasonal work, that means your application will be declined.

Minimum income requirement not met

Along with income stability, we have a threshold of N50,000 for every potential lender from Kwaba. Your net income must be 50,000 after all deductions on your salary amount including existing running loans. This is to ensure you are financially capable of paying what you borrow. If your income is below our threshold, your application will be denied.

Loan purpose mismatch

The loans we provide at Kwaba are specifically for rental purposes. If we find out through our verification process that the money you have requested is not intended to be used for the purpose of rent your application will immediately be denied.

Missing information or documents

Our loans will always require several forms of documents, including employment information, bank statements etc. If you are missing some of this information your application is typically guaranteed to get denied. Make sure all of your paperwork is in order before you apply again.


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Adeyinka Adekanbi


  • What if someone is not a salary earner will this this person still have access to your loan. Person like me i run my own private business, can i get a loan from your organization.

    • Hello Godwin, at this time we are unable to give loans to business owners but we’re working on changing that soon