Why was my Paylater loan application declined?

Loan decline reasons - Paylater

Loan decline reasons - Paylater

On the Paylater platform, loans could be declined for several reasons. First, before you apply for a loan, please ensure you have supplied only correct and valid details. When a loan application is declined or unsuccessful, an email is sent to the user with more information on the reasons for the decline. Some common reasons why we decline loan applications include:

  • Your existing level of debt and loans you’re servicing at the time you apply. If this is high, we might decline your application.
  • The amount of information in your credit file – if there is not much to see, we may decline your application.
  • The affordability of the loan in your financial circumstances. If you do not have enough disposable income to service the loan, we’ll likely decline your application.
  • Evidence that you’ve paid off credit on time in the past. if there’s no evidence that you have repaid loans on time in the past, we may decline your application.
  • Your credit report. If it highlights late repayments and unpaid debts, your loan application will be declined.
  • If details you provide upon registration do not match other records (BVN, etc) we check through.

Loan decline reasons - Paylater

Loan decline reasons

In attending to loan decline issues, we’ve realized that in some cases (especially those where wrong/invalid details are supplied), a decline can be avoided.

Here are some of the reasons why a Paylater loan application is declined, and what to do in those cases:

1. Insufficient information

Sometimes, loan applications are declined because the platform could not gather enough information about you. This could be because:
1. You’re not accessing the app with what is your main phone.
2. You did not grant app permissions to SMS, Contacts, etc, upon registration.

If this is the case, it means that the system will be unable to fetch enough information to verify against the details you’ve provided in your app at registration, hence a decline is possible.

What to do

Here are some steps you can take:
1. Ensure you are using your main device – one where you receive all your SMS text messages, and all your contacts are stored.
2. If you did not grant app permissions initially, you may clear app data (in your phone settings) and log back into the app. As the starting screens go by, please grant all app permissions by clicking “Allow“.

You can go ahead to reapply for a loan once this is done.

 

2. BVN – Phone number/Date of birth Mismatch

At the point of your BVN registration, a lot of details are collected, from phone number to date of birth, and more. When registering on the Paylater platform, it is expected that your details are consistent with what you have in your BVN data. This is because BVN is a method of user identification for the platform, hence irregular details will be flagged.

  • BVN – Phone number mismatch

Following your loan application decline, you will receive an email that says the number registered on your Paylater account is different from your BVN phone number. This means that at some point you may have changed phone numbers. This will make accessing a loan impossible because all your details have to be consistent with your BVN data.

What to do

Here are steps to take to rectify the BVN – Phone number mismatch
1. Use the phone number/SIM attached to your BVN data.
2. If your BVN phone number is no longer in use by you, visit your bank to update your BVN data to reflect your new phone number.
3. Obtain a copy of your BVN data page showing the updated phone number, from the bank.
4. In an email addressed to customer@onefi.co, attach the copy of your BVN data page along with a copy of a valid, government-issued ID (Permanent Voters Card/Drivers License/National Identity Card/NIMC slip) of yours.
5. In the body of your email, briefly state the issue and include your Paylater Client ID for reference and resolution

  • BVN – Date of birth mismatch

Following your loan application decline, you will receive an email that says the date of birth registered on your Paylater account is not consistent with the date of birth registered in your BVN data. The inconsistency in details will make it impossible to verify and identify you as the user applying for the loan.

What to do

Here are steps to take to rectify the BVN – Date of birth mismatch
1. Correct your date of birth to match what is registered in your BVN data, in the app (this will only be possible if you have not accessed a loan or carried out a transaction in the app before).
2. If you have previously carried out a transaction, you will be unable to edit your date of birth in the app, hence you’ll need to visit your bank to update your BVN data to reflect the date of birth registered in your Paylater app.
3. Obtain a copy of your BVN data page showing the updated date of birth, from the bank.
4. In an email addressed to customer@onefi.co, attach the copy of your BVN data page along with a copy of a valid, government-issued ID (Permanent Voters Card/Drivers License/National Identity Card/NIMC slip) of yours.
5. In the body of your email, briefly state the issue and include your Paylater Client ID for reference and resolution.

Once these details are updated on our platform, you will receive word, and you’ll be able to reapply afterward.

3. ID NOT VERIFIED/ ID -DETAIL MISMATCH

When applying for loans from ₦50,000 and above, you are required to enter the details of your valid, government-issued ID. The IDs accepted on the Paylater platform include: Permanent Voter’s Card (PVC), Driver’s License, National Identity Card/NIMC Slip, International Passport.

If, in the email you receive following a loan decline, it is stated that your ID could not be verified or that a detail (in most cases a date of birth or name placement) is mismatched, it means that your details registered in your Paylater app are different from your ID details.

What to do

Take these steps to resolve an unverified ID issue:

  • Ensure that you have entered ID details correctly. ID numbers are located on different parts of the different ID types.
    – For the Permanent Voter’s Card (PVC), you are to enter the VIN (Voter Identification Number). This is a 19 digit number (alphabets are included) located at the top right of the card.
    – For the Driver’s License, you’re to enter the numbers on the top-left corner of the card.
    – For the National Identity card, you’re to enter the Document number at the bottom-right corner of the card.
    – For the NIMC Slip, you’re to enter the NIN (National Identification Number). This is an 11 digit number located on the second row, at the left side of the slip.
    – For the International Passport, you’re to enter the Passport number on the top-right corner of the data page.

 

  • If the email states that the date of birth on your Paylater account differs from what is in the ID, you are to do one of the following”
    – a) Reapply using another ID that reflects a date of birth consistent with the date of birth on your Paylater account and BVN data.
    – b) Reapply for a loan amount below ₦50,000, if you have no other means of ID with a consistent date of birth.

4. Late/Bad Repayment Records

When you access a Paylater loan, it means that we have held up our end of the loan agreement. However, when you do not repay your loan according to schedule i.e repaying late, it means you have breached the loan agreement.
Late repayments can affect your eligibility to access loans. If you have made a series of late repayments, you may not be qualified to access a loan.

What to do

If this is the case, we always advise that you continue to use other services in the app, by making bill payments, buying airtime, and transferring funds.
These actions could help the platform rebuild trust in and you. This will help lift your eligibility.

You may also reapply after 1-2 months after a decline, or wait to be notified of your eligibiliy to apply.

 

Negative credit/Overdraft

On rare occasions, a loan will be declined for this reason.

What to do

If you receive an email, following a loan decline, stating this reason, we always that you request and obtain a credit self-report from a Credit Bureau. The report will highlight what financial institutions may have flagged you for unpaid credit or overdraft. You are to visit or get in touch with the financial institutions highlighted to clear any issues.

 

If your loan is declined, and you do not receive an email stating the reason, you may reach out to us via our support line by calling 01-4609945, or on Facebook, Instagram, or Twitter, for a resolution.

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