Kuda Bank offers three kind of Loans to customers; overdraft loans, salary advance loans and personal loans.
Kuda Overdraft: This is a small, short-term loan accessible anytime for frequent Kuda account users. It has a low maximum amount and accrues a daily interest rate of 0.3%.
Kuda Salary Loan: This seems to be a larger loan option available only if your employer offers it through the Kuda Bank App. The application process is done through the Kuda app and eliminates paperwork.
Kuda Personal Loan: Another larger loan option accessible directly through the Kuda app for up to ₦150,000. Similar to the Salary Loan, it boasts a quick approval process and avoids paperwork.
Kuda Overdrafts provide short-term financing accessible at any time, contingent upon regular usage of your Kuda account, with just 0.3% daily interest and no cumbersome paperwork. With Kuda Salary Loan, facilitated through your employer's enrollment, you can swiftly apply for a loan via the Kuda app after opening an account with your BVN and valid ID. Once the automated approval process concludes, you'll receive a loan offer directly on your Kuda app. Additionally, Kuda personal loans grant you access to up to ₦150,000, sans paperwork, and with funds deposited into your Kuda account within minutes, offering a hassle-free borrowing experience.
How to qualify for Kuda Loans
The requirements and criterias to qualify for Kuda loans are to different from one another based on the type of loan:
Kuda Overdraft Requiremnts
Aside the fact that you must complete your KYC verification on Kuda Bank using your Bank Verification Number (BVN), National Identification Number (NIN) and your prove of address, Kuda also emphasizes using your Kuda account regularly to get eligible for the Overdraft. These usage involves transactions like buying airtime, paying bills, and making transfers.
Kuda Salary Loan Requiremnts
Eligibility for this loan hinges on your employer offering it through Kuda. Once your employer is signed up, you can apply through the Kuda app with your BVN and ID.
Your monthly earnings will also be reviewed and considered to know how much you'll able to borrow as a beginner or at a time.
Kuda Personal Loan Requiremnts
According to Kuda, to be eligible to get personal loan from the app, your account must pass through automated loan eligibility check. To improve your chances of getting approval, it might be helpful to maintain a good transaction history within your Kuda account.
Steps to Borrow Money on Kuda Bank App
Follow these steps to obtain a Loan from the Kuda App:
- Login to your Kuda Bank App
- Tap on "Borrow" as highlighted in the image above.
- Scroll down and tap on "Get a Loan"
- You'll be shown available Loan Type that's suitable for your account.
- For instance, tap on "Overdraft" to get a quick Loan.
- The app will automatically check your account credibility and offer you an amount you're eligible to obtain.
- Tap on "Get Loan" and the Loan will be disbursed into your Kuda Bank Account immediately.
How to repay Kuda Bank Loan
Repaying your Kuda Loans depends on the type of loan you obtained. Kuda Overdraft only requires you to have enough funds in your Kuda account to cover the overdraft amount. Kuda will automatically deduct the overdraft and any accrued interest (at 0.3% daily) when funds are deposited into your account.
Kuda Salary Loan & Kuda Personal Loan, on the other hands, come with fixed monthly installments. When you accept the loan offer, Kuda may ask you to add a debit card to your account or explore other means of payment methods like Kuda Bank Account Balance.
They will then automatically charge your card or deduct it from your Kuda Account Balance for the installment amount whenever your repayment is due. Be sure to maintain sufficient funds on the debit card and kuda balance to avoid late payment fees.