When in need of loans as a Nigerian, there are more than one means of getting it. From myriads of loan apps to money lenders to conventional banks, the choice of your loan giver is up to you.
Kuda Bank is a virtual (or online-only) bank that offers banking services similar to that of conventional banks in Nigeria. But does Kuda Bank give loans? To get an answer to this question and more either as a new or prospective Kuda Bank user, read on.
Does Kuda Bank Give Loans?
The direct answer to this question is YES! Kuda Bank gives loans. Their loan offer is termed Kuda Bank overdraft.
Kuda Bank overdraft allows you to take quick short-term loans from Kuda Bank without any paperwork whatsoever. But the catch here is that you must use your account regularly to be eligible for the overdraft. Going by Kuda Bank’s specification of its overdraft, the overdraft is a short-term loan offer to help you keep your life running smoothly.
As a Kuda Bank user, if your Spend account balance gets too low for your comfort, you can always take some money out of your Borrow account to help cover your expenses and pay back at any time. The payback interest is fixed at 0.3% daily.
What You Should Know Before Taking Kuda Bank Overdraft
Kuda Bank will only offer you a loan amount that does not exceed the amount you are eligible for. Once you opt in to the overdraft, you agree to be bound and subject to Kuda’s terms and conditions.
Kuda is only extending an overdraft to you on the condition that they have gotten a satisfactory credit report on you and have carried out additional verification checks. Kuda reserves the right to take back its overdraft offer if the previously stipulated checks aren’t satisfactory.
If you haven’t used the overdraft, you may reject the offer within a period of three (3) working days. No fee will be charged for this.
How Do I Apply for Kuda Bank Overdraft?
Getting a Kuda Bank loan offer is just as simple as checking your eligibility status in your borrow account, entering the amount needed, confirming the transaction, and then starting to spend because your account will be credited instantly.
To apply for a Kuda Bank loan offer or overdraft as a user, here are the simple steps you need to follow:
- Open the Kuda Bank app and swipe to your Borrow account.
- Tap on borrow.
- Then tap on Get your Overdraft.
- Tap next.
- In the space provided, enter the amount you want to borrow and then tap on Done.
- Verify your transaction using either PIN, face ID, or fingerprint.
- Finally, tap Okay and you are free to spend from your account.
How Much Can You Borrow from Kuda Bank?
As a Kuda Bank user, you can borrow an amount of up to ₦50,000 at a fixed 0.3% daily interest rate.
Note that, the amount you are eligible to borrow varies for different account holders and this depend on factors such as your credit score and how regularly you have been using your Kuda account to carry out transactions.
How Do I Repay Kuda Bank Loan?
Repaying a Kuda Bank loan is a simple process that is much like being charged from your Spend account automatically. **Kuda bank noted that if you don’t have enough money in your spend account to repay the entire overdraft when it’s due, repayment will be made in bits every time money is added to your account until everything you owe has been repaid.
Conclusion
Kuda Bank is a digital bank that allows you to send and receive money and pay for utilities with the help of the Kuda app. In addition to these, and just like the traditional banks, Kuda Bank also gives out loans.
Kuda Bank loan offer is known as Kuda Bank overdraft – which you can also get through the app. This overdraft is given on merit, in the sense that you’ll only get it when you use your Kuda app for transactions frequently and when Kuda Bank has carried out a satisfactory verification check on you.