Kwaba Loan Application - What It Is, How It Works, And How To Get A Loan To Pay Rent

Kwaba Loan Application – What it is, How it Works, and How to Get a Loan to Pay Rent

Searching and getting a comfortable house within budget in Nigeria today is enough stress while getting to renew the rent after a year in an unstable economy while earning an almost fixed salary which doesn’t grow as fast as the expenses and bills are even more traumatizing. This is the problem Kwaba loans seek to solve.

Table of Contents

What is Kwaba

Located at 131A Eti-Osa way, Dolphin Estate, Ikoyi, Lagos, Kwaba is a rent payment platform that helps low-middle income-earning Nigerians pay their house rent in convenient installments.

Kwaba is not a conventional loan company that hand’s out loans for business or medical bills rather Kwaba is a loan company that helps interested Nigerians pay their rent directly to the landlord in bulk while the person repays the loan amount monthly as selected by the individual at the point of signing up.

Who is Behind Kwaba

The CEO of Kwaba as stated on their website is Obinna Molokwu and the company is co-founded by Jadesola Opawumi. Little or no information is given about both of them on the website and the names are not linked to any social media handles as at the time of this post.

How it Works

To get a rent payment loan from Kwaba, first, you have to sign up on their website by providing details such as; Full name, phone number, email, and the desired password. After your sign up, you will proceed to tell the company details about your accommodation status and the options here includes;

Looking to renew my rent
Want to pay for a new place
I’m still searching

After selecting any of the above options, you will state the price of your rent followed by how much you have at hand then the amount you wish to get from Kwaba, the amount you earn monthly, and finally your repayment plan.

After this process, the company will calculate the amount you requested from them and distribute it into the number of months you selected in your repayment plan. If the amount is okay by you, you are then to proceed to provide your employer’s details(company name and address) followed by your BVN(bank verification number) and finally your date of birth(this should be the same with your BVN).

After successful application submission, the company will run some background checks to make sure you are creditworthy and also to verify the information you provided. If cleared, the company will make the payment of the sum you requested to the landlord while you pay back the stipulated amount shown in the repayment calculation.

How Many Percent Interest is Applicable?

Although I’m yet to verify the interest rate of the Kwaba loan I made this calculation according to the amount prevented by the company’s calculator for a loan of NGN 500,000(Five hundred thousand Naira) for a repayment period of 12 months(1 year).

As shown in the image above, I am to pay NGN 64,000(sixty four thousand Naira) monthly.

Calculation of Kwaba Loan Interest Rate

64,000 X 12 = 768,000

768,000 – 500,000 = 268,000

To get the interest rate

768,000 ÷ 100 = 7,680

7,680 × 34.9 = 268032

From the little math above, you can see that the interest rate for this loan is approximately 35% when 500,000 rental loans are collected under a 12 months repayment plan. You can follow the method above to know the interest rate for your desired amount.

How Long Does it Take to Get a Kwaba Loan?

From the day you applied, it can take between a few days to a month to get your loan depending on the amount and how soon the company is able to verify the information you submitted.

Who Can Apply for A Kwaba Loan?

Kwaba rent service is only available in Lagos and Abuja at the time of this post. Hence, only those within the city who are employed and whose salary or income is up to NGN 50,000 monthly are eligible to use or apply for this service. We will update you if more cities are added.

Kwaba App

You can also download the company’s app on the play store or iOS store if you prefer the app option.

Final Words

Kwaba is a nice concept that can quickly dominate Nigeria with its service as the country is going through hard times right now and most people can hardly afford the increasing cost of rent renewals. But the acceptability process will be a lot faster if they can reduce their interest rate and ensure proper verification is done to avoid being scammed.

Note: this is not a promotional article, rather did the company pay us to write about them. However, we may earn some commission if you use our referral link.

Have you tried this service or have observations or comments? Please use the comment box below. If you wish to try it, you can use our referral code: 15fd5eff

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Kwaba Loan Application – What it is, How it Works, and How to Get a Loan to Pay Rent

What is Kwaba

Who is Behind Kwaba

How it Works