Introduction

Does Kuda give a loan? In Nigeria’s swiftly growing fintech atmosphere, Kuda Bank has carved a niche for itself as a main digital financial institution providing seamless economic services to individuals and small agencies. With the promise of “banking borderless,” Kuda has become popular amongst Nigerians for its zero maintenance fees, instant money transfers, savings alternatives, and interface friendly. However, the recurring question amongst many users is: Does Kuda give a loan? In this post, we explore the nature of Kuda loans, who qualifies, how to get entry to them, and what makes Kuda’s loan providing unique.

What is Kuda Bank?

Kuda Bank is a digital-simplest financial institution licensed with the aid of the Central Bank of Nigeria (CBN). It operates ordinarily thru its cellular application, allowing customers to open debts, ship and acquire money, pay payments, and store money effectively. With no physical branches, Kuda relies on progressive generation to deliver stable and convenient banking services.

Read more on: Which loan is easy to borrow?

Does Kuda give loans?

Yes, Kuda does offer loans, although its approach differs slightly from conventional banks. Kuda affords what it calls “Overdrafts,” which are quick-time period credit score extensions available to eligible customers. These overdrafts act like mini-loans, allowing customers to spend more money than they’ve in their bills, up to a pre-permitted limit

Types of loans Kuda Offers 

Kuda Overdraft (Quick Loans)

Small, short-term credit (repayable in days/weeks).

No collateral needed.

Interest applies (varies in keeping with consumer).

Salary Advance (For Salary Earners)

Available to customers with verified profits payments.

Repayment deducted robotically on payday.

How to apply for a Kuda Loan

It’s easy to get loan 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.