Mobile loan apps: Why my loan is not approved after repayment

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Sometimes when you repay your loan on time and then apply for another one immediately it doesn’t go through, why? Well, let’s find out in the post below. I mean why does Tala, Branch or any other mobile loan apps not approve your next loan after you’ve honestly repaid them on time.

Mshwari is the only place you get a new loan shortly after repaying the old one. But the downside to this is that you still get the same loan limit you have been advanced before.

Why? It is simply because, they are the only ones who have the blueprints of your mpesa statements, credit history, and your line has been active for the past six months. Quite funny, ha? Here is the reason why your loan can’t be approved immediately after you have repaid the initial one.

Mobile loan apps: How is your Loan determined

Loan apps in Kenya depend on the information you give them like full name and National ID number and data that is collected from your sim cards on a daily basis, such as Mpesa transactions and your call history to determine the amount of loan you qualify for.

This data is more meaningful to the loan app than the traditional credit score as it helps in determining your consistency via trivial routines you make on your phone.

In addition to the above, most mobile loan apps have their default mode set to autopilot. That is, they depend on a machine learning algorithm. What I mean by this is that the apps need to learn from your smartphone device before making a decision.

The app is usually an automated program which handles a large number of requests at a given time. It is programmed so as to look at given figures before advancing a loan to a clientele. So, in-case you do not qualify for a new mobile loan, do not take it personally… It’s just the system.

You might also like: How to check your CRB status

Why does your second loan take so long to be approved

There are thousands of people who borrow daily on these apps. For you to get your next loan immediately after repayment, the previous loan history has to be assessed and reviewed manually by an individual.

These revisions help to determine whether you qualify for the next loan, an increase in loan limit or a decrease. This simply means that you must have other avenues which you can use apply for another loan.

If you read on the previous post about Tala loan app, you will see that most of our avid readers are complaining about not being advanced the next loan in spite of making repayments on time as per the loan duration.

In conclusion, never depend on one loan app. To find out why read out the previous article on Ways to increase your loan limit on mobile loan apps. Let’s hear your thoughts in the comments section below. Be the first to like us on Facebook. You can also share the post if you find it educative and interesting.

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Raf'ael
Rafa'el is an Engineer/Entrepreneur who loves turning everything he finds interesting into hard cash, including conversations and directions.

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