Does Kuda give a loan? Kuda is a modern revolutionary banking platform in Nigeria. Self-styled as ‘The Bank of the Free’ it has gained momentum in the usage of its innovative features which encourage short-term loans to users. How exactly does borrowing from Kuda work, though? This guide intends to give all information on how loans can be accessed through Kuda, whether you are already a user or contemplating joining.
Does Kuda a Give Loan?
Sure, Kuda has the arrangement of offering its users loans which can be termed as overdrafts. An overdraft is a short time loan for extra money when the account is devoid of and/ or low balance. It gives the opportunity to borrow from Kuda up to₦ 150,000 subject to your eligibility.
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What Makes Kuda Loans Unique?
Kudas which can provide loans are instant, and entirely digital, and do not require collaterals, unlike other loans that come with loads of paperwork and/or require collateral before one can obtain the loan. No visiting any outlet, no physical documentation; everything is happening digitally through the Kuda app.
Kuda loans are furthermore:
Flexible: you can borrow at any given time as long as you meet the set criteria; transparent: no hidden fees and no vague terms; all charges are upfront. Convenient: one can get loans straight from your smartphone.
Borrowing Money Internally through Kuda
It’s easy to borrow money from Kuda, and this is how to do it:
Step 1: Launch the Kuda App
First, make sure you have Kuda on your phone. Log in to your account using email and password credentials. If you’re new to Kuda, it should be downloaded on Google Play Store or the Apple App Store, and registration created.
Step 2: Access Your Borrow Account
Find Borrow at the app’s home screen. Everything is done here regarding loan-related activities. Tap or swipe to your Borrow account.
Step 3: Get Started with Overdraft Processing
Click on the Borrow option, and then Get Your Overdraft.
Step 4: Identify Needed Amount
Enter the amount to borrow. The amount is determined by your account activity and limit.
Step 5: Confirm Your Request
Complete the process by confirming with your transaction PIN, fingerprint, or Face ID.
Step 6: Enjoy Your Money
The borrowed amount, once confirmed, is added to your Kuda account balance. Spend it immediately using your Kuda debit card or transfer it to other accounts.
Eligibility Criteria for Kuda Loans
Not everyone qualifies for a loan immediately after signing up. Kuda has a series of checks to ascertain whether you’re eligible or not. Here are the facts:
Eligibility Criteria for Loans
To be eligible for Kuda loans, you must:
Regularly transact with your Kuda account.
Maintain a good transaction history.
Pass loan eligibility checks by Kuda’s system.
Read more on: Why is Kuda account restricted?
How Long Should I Use Kuda Before I Am Eligible to Borrow?
There is no time frame, but regular use of your account increases the chances. Regular deposits, frequent transaction activity, and healthy balances will help you qualify sooner.
Tips to Improve Eligibility
Make Regular Deposits: Make regular deposits to your Kuda account. This shows activity and financial stability. Use Kuda for Transactions: Pay bills, make fund transfers, and use your Kuda debit card for purchases.
Ensure Zero Balance: Keep your account in good standing so as to grow an impression of financial management.
Loan Amounts and Limits
Kuda allows an overdraft for a maximum of ₦150,000, however, the actual amount that one can borrow will depend on the activity in the account and eligibility.
What Factors Determine the Loan Limits?
The loan limits depend on the following:
Frequency and volume of transactions on your Kuda account over the lifetime.
The balance on the account over time.
Your repayment history (if you have borrowed from Kuda before).
Can I Borrow Above ₦150,000?
Currently, the maximum limit is set at ₦150,000. But, of course, as Kuda progresses in service provision, Kuda will make it possible for customers to borrow beyond that amount. Just keep doing business with your account and maintain an impressive repayment record to better your chances of an increased limit in due time.
How You Repay Your Kuda Loan
Paying back your loan is easy and automatic. This is how it works:
1. Automatic Deductions
If you take an overdraft, the repayment amount gets automatically deducted by Kuda from your account every time there is a bank deposit. This makes it hard for you to miss repayment.
2. Early Repayment
For those that would like to repay a loan early, it could be done manually by transferring the borrowed amount into your Kuda account. It may also improve your source of borrowing into a higher limit for future borrowing.
3. Loan Duration
Kuda loans are short-term loans. So just keep up with your payments so that you have a good credit record and don’t lose out on the benefits of a loan.
Read more on: PARENT PLUS loan
Why Kuda for Loans?
Loans by Kuda stand on an altogether different plane compared to traditional banks and every other loan provider. Here are its benefits:
1. Instant Money Access
With Kuda, you can borrow money in minutes. No approvals, no visits to a branch.
2. No Backing or Guarantor
Kuda overdraft only takes activity on your account as a base for eligibility but unlike the conventional loans, they do not require any collateral or guarantors.
3. Sound Fees
All what Kuda charges are transparent. There isn’t a sneaky fee, and the interest won’t catch you off-guard at loan confirmation.
4. A Fully Digital Service
Everything Kuda does is online, meaning you can manage your loan from home.
5. Flexible Repayment Options
You can repay your loan automatically or manually, whichever is best for you.
Frequently Asked Questions (FAQs)
1. Is Kuda a Registered Bank?
Indeed, Kuda is a registered microfinance bank licensed by the Central Bank of Nigeria (CBN) with registration number RC 796975.
2. May I Borrow from Kuda Without a BVN?
Of course not because it will ask you for a Bank Verification Number (BVN) so as to open a Kuda account and loan access. Your BVN becomes Kuda’s account for verifying your identity in order to determine your eligibility.
3. Are there additional Charges?
Kuda is completely open about everything. It clearly states all charges, such as interest rates, in advance before you confirm your loan.
4. What Happens If I Don’t Repay On Time?
If you fail to repay on time, this could happen: Limited access to future borrowing, credit bureaus have been informed about this, and this will reflect on your credit score. Plus, you may be charged an extra processing fee or penalty.
5. Can I Borrow Again After Repaying?
Yes, once you pay back your loan, you may borrow again. In fact, the timely repayment increases your chances for borrowing since it might improve your borrowing score and may even add to your borrowing limits.
6. Does Kuda Have Other Types of Loans?
Kuda, at this moment, is focused on short-term overdraft. Therefore, the advancement of additional types of loans may become an option in the course of the development of the platform.
How to Get Started with Kuda
New to Kuda? Learn how to start with these few easy steps:
Download the App:
Search for “Kuda” and install the app from the Google Play Store or Apple App Store.
Sign Up:
Register by entering some basic details such as your BVN.
Fund Your Account:
You can fund your account by either transferring funds from another bank to your account or by linking a debit card.
Start using Kuda:
You transact, bill pay, and use your Kuda debit card for making your account activity count.
Check Loan Eligibility:
Over time, Kuda will notify when you become eligible for an overdraft.
Final Thoughts
Kuda is revolutionizing the banking and lending sector in Nigeria. From fast cash for emergencies to loans which really do not matter to the extra expenses, Kuda loans avail very easy and straightforward modes. Use your account without or with stress as far as it regards the traditional loan process because only a few qualifications are needed to borrow from your account without stress.
So, who is waiting? Let Kuda be your start today towards the future of banking at your fingertips.
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