Decline reason makes no sense

I app**** for a micro loan and received a SMS advising that the loan was provisionally approved and that I would be contacted shortly. I am an existing ABSA customer and have an existing micro loan so I thought no problem. I was not contacted so I called in the agent advised that the response time is 2 to 3 working days I advised her that the email specified no response time at all, she then took down my details and said it was declined because of insufficient funds? this makes no sense, this micro loan was a smaller amount with a longer term, my salary increased so I couldn't understand why I was declined for that particular reason. I was shocked because the 1st loan I app**** for went so well and had no hiccups. disappointed.