Nearly all sector of the economy requires start-up capital to finance their business. In terms of finance, they expect a loan offer where the repayment period is up to 6 – 12 months period. When you look at Microfinance Bank around Nigeria, you find that the Kuda Bank platform is one of the best in town. Kuda Bank offers a platform where people and organizations can repay loans and finance credit within a range of 6 months to one year. When you sign up with Kuda Bank, you have the opportunity to access the loan facility every time. Depending on many factors, you can receive an overdraft and many other services there too. This article is designed to unravel the mystery regarding the process of applying for a loan and borrowing money from the Kuda Bank app.
First, what is the Kuda Bank app?
Kuda Bank App
Kuda Bank is an application that allows people to carry out banking services conveniently without problems. It was released in 2019 as a part of increasing its scope as an organization. Unlike some other platforms, this app is useful to all device users. Both iOS and Android users can have access to the application. With the Kuda app, you can save, spend, withdraw, and invest your money as often as you want without going to the bank.
The Kuda Bank app is a platform that has a nice interface. It makes navigating easy and stress-free. According to the Google play store, the app is widely used everywhere in Nigeria. It is rated with a 4.3 positive rating out of a possible 5. In terms of numbers, it has over 236,000 users nationwide. It is very easy to download as it doesn’t require much space. It has just 43MB of space requirements which isn’t large.
How Does Kuda Bank Loan Operate
Just like any other bank, Kuda Bank also offers financial credit facilities to customers. Kuda Bank offers a different range of loan options to their customers. The most popular loan objective it provides is the Kuda Overdraft.
With the Kuda Overdraft, it is easier for one to withdraw money more than what is in your account balance. Regardless of how much you intend to withdraw, you should already be a customer of the bank.
All Kuda Bank activities can be easily done with a smartphone or even a laptop or desktop using the mobile app. Talking about Kuda Bank Loan, do you know you can withdraw your loan balance through your ATM card? Yes, it’s possible! Kuda Bank offers customers a debit card if they want it. You can simply order it and it would be delivered to your location.
Kuda Bank Interest Rate
The Kuda Bank interest rate is 0.3% daily of the amount borrowed until full settlement. For example, if you borrow a loan of say N50,000, your interest every day would be N150. This means every day until you pay back the loan N150 would be compounding to your original borrowed amount every day. To continue our illustration, if you are to pay at the end of 2 months (60 days), you would end up with N9000 interest.
How To Borrow Money From Kuda Bank
As stated earlier, the most common package of Kuda Bank Loan is the Overdraft. The Kuda Overdraft allows you to borrow money more than what is in your account balance. As with other microfinance platforms, you do not need any paperwork, documents, or collateral when requesting a loan from Kuda Bank. Here are the steps to borrow money from Kuda Bank:
Step 1. Sign up on the Kuda platform
When registering for a Kuda Bank account, you would be asked to provide information regarding your name, email address, contact address, and other important information
Step 2. Submit your BVN
You need to submit your Bank Verification Number for your loan request to be granted. Also, your BVN helps to upgrade your account with the platform.
Step 3. Submit your NIN
Your National Identification Number is very important for the bank to know your Identity and your location
Step 4: Be A Regular User of the App
Use the application for your daily transaction to become qualified for the loan amount.
The bank offers you the chance of getting a Kuda Bank Loan when you are consistent with the app. It follows the tenets therefore ” The more you use the app, the more you stand a chance of getting a Kuda Bank Overdraft”. Also, you would be charged an interest rate of 0.3% until the loan has been fully repaid.
How To Borrow Money From Kuda Bank Using The App
Step 1: Launch the Kuda Bank App
Step 2: Click on ‘Borrow’
Step 3: Click on ‘Get your Overdraft’
Step 4: Tap ‘Next’
Step 5: Enter the amount you wish to borrow
Step 6: Click ‘Confirm’
Step 7: Confirm your request by simply typing your PIN.
How Much Can One Borrow From Kuda Bank?
Of course, it always becomes a problem whenever a person wants to borrow a loan and it is not up to the expected amount you wish. This often depends on many factors including consistency, worthiness, repayment history, and so on. This section of the article discusses the kind of loans Kuda offers to their customers
Business Loan: Kuda Bank offers business owners and entrepreneurs loan amounts of up to N3,000,000. They make sure businesses are adequately funded. Also, this loan amount must be repaid within the space of 1 year
Personal Loan: Personal loans are financial aid given to individuals in crisis. If you need financial services now or anytime in the future, Kuda is here for you. Kuda Bank offers their customers up to N200,000 in loan amounts to solve urgent needs. This amount can be repaid within the space of 12 months (1year)
Salary Advance Loan: Kuda Bank offers a salary advance of up to half of the borrower’s monthly salary. They have a maximum limit of up to N200,000. The repayment period is 1 month.
How much can Kuda Bank give?
A Kuda loan is a one-off payment made into your bank account. This loan would be repaid within the stipulated time Kuda gives you. However, before then Kuda Bank would have to access your application. Kuda gives loans of up to N200,000
What is the Kuda USSD code?
To access the Kuda Bank USSD code, follow the instructions provided using the code. To start, open your dial pad with your smartphone and click on *894#.
How much can Kuda borrow me for the first time?
The highest loan amount Kuda can offer first-time customers is N150,000. Kuda may not allow you to borrow more than that, you would have to wait for a long time. In the same vein, you need to pay back your amount within the stipulated period
Can Kuda Bank receive dollars?
No. Kuda only deals with naira for now. Also, if you want to receive dollars you need to get yourself a domiciliary account with a local bank in Nigeria
What is another name for Kuda Bank?
Kuda is also known as Kuda Technologies.
We have seen the process of borrowing money from Kuda Bank. Kuda Bank is a reliable platform for classes of people. However, if you don’t pay back the loan at the stipulated time of payment, you stand the risk of Facing legal action, Decreasing your Credit Score, Increased High-Interest Rate. Regardless of this fact, Kuda Bank is a bank of the free!