If you are looking for a bank that can give you a quick loan for your personal and business needs, Kuda Bank has got you covered.
There has been a time where we could make do with extra cash for both personal and business needs, especially when it was not planned for.
These situations can be frustrating and not something we wish for, but when they come, there is nothing we can do but take care of them.
We have had numerous online platforms and banks that have been introduced to provide solutions to this problem.
These banks have not made it easy for individuals due to their high interest rates, other hidden charges, and even collateral.
In addition, their long documentation process and collateral before giving out loans can be exhausting.
One platform that has been consistently reliable for individuals is Kuda Bank, popularly known as the Bank of the Free.
They give loans to individuals to take care of diverse needs, ranging from financing a project to paying bills to expanding a business—the list is endless.
In this article, we will discuss in detail all that you wish to know about Kuda Bank and some frequently asked questions.
This information will help you decide if Kuda Bank is the right lending platform for you. Keep reading
About Kuda Bank
Kuda Bank, popularly known as Bank of the Free, is a fintech company operating in Nigeria.
It is a microfinance bank licensed to operate in Nigeria by the Central Bank of Nigeria (CBN) and was founded by Bas Ogundeyi and Musty in 2019.
Since its creation, Kuda has proven to be one of the best conventional banks in Nigeria.
One special thing about this bank is that they do not have branches; you only need your smartphone and internet connection to get started.
Additionally, they deliver their ATM debit card to your address anywhere in Nigeria.
How Kuda Bank Works
Kuda, like every other online platform, offers seamless banking services to individuals at any time with zero charges.
These services are all done on the Kuda mobile banking app because they do not have branches anywhere in Nigeria.
They have customer support that is available 24/7 to attend to the complaints of their customers.
Furthermore, one important feature that comes with the Kuda Mobile app is the ability to give out loans to customers.
Customers can apply for a loan and instantly get the loan to take care of their personal and business needs.
Kuda Bank Loan
Kuda Bank offers loans, which include salary loans known as overdrafts, to their customers.
This means that customers can get cash that is more than their balance to take care of their emergencies and repay it when it is due.
These loans are called short-term loans and are available only to bank account holders.
So without having an account with them, you cannot access their loan package.
The loan service is linked to a customer’s account and comes with an interest rate, duration, loan term, and so on.
Customers can access the Kuda loan through their mobile app, either on the Google Play Store or Apple Store.
Requirements for a Kuda Bank Loan
Kuda Loan can be accessed from any location in Nigeria by a customer, provided they have an internet connection.
Although having a guarantor will increase the chances of getting a higher loan amount, it does not necessarily require a guarantor.
Additionally, collateral or long documentation, unlike other banks, is not required to secure the loan.
However, for customers to access the loan, they need to meet the following requirements:.
- The customer must download the Kuda mobile app from either the Google Play Store or the Apple Store.
- Sign up with your BVN and a government-approved ID.
- Use the mobile app regularly for transactions to increase your chances of getting approved for a loan.
Note that Kuda automatically offers you an overdraft loan amount based on your consistency in using their mobile app for transactions.
How to Apply for a Kuda Bank Loan
Securing the Kuda loan is a very easy and straight-forward process.
Follow the step-by-step process provided below.
- Launch the mobile app, and on the dashboard, locate and click on borrow.
- Locate and click on ‘Get Your Overdraft’
- Proceed by clicking on Next.
- Enter the loan amount you wish to collect and click on ‘Done’.
- Proceed to verify the transaction by entering your transaction PIN, face ID, or fingerprint.
- Click OK to submit the loan application.
Immediately after you submit the application, Kuda will review it to determine if you are eligible or not.
The review process is swift, so you will receive a notification in a few minutes to know the status of your application.
If the application is approved, the funds will be sent to your account immediately by Kuda.
Kuda Bank Interest Rate on Loan and Repayment
Kuda charges 0.3% daily on the loan amount collected until the refund is completely done by the customer.
Take, for example, a Kuda loan of N50, 000 with a daily interest rate of N150, and if the loan is to be repaid within 30 days, that would be N4, 500.
The total cash to be repaid would be N54,500.
The loan repayment period is 90 days, with a maturity date of 30 days immediately after the loan has been released by the bank.
Penalty on Default of Kuda Loan
Securing a loan from the banks makes it an obligation that you repay on or before the due date.
In the case of default, the bank will charge you a default fee, but that will be after 3 days from the due date.
You will be charged 1% of the monthly loan amount that you borrowed from the bank.
If you continue to default, they will take legal action against you, and all the money spent in the legal process will be added to your loan amount.
How to contact Kuda Bank
Despite the fact that they do not have branches in any city in Nigeria, they have an office where people can walk in and make a complaint or get clarifications.
You can contact them through the following means:
- Visit their head office at 151 Herbert Macaulay Way, Yaba, Lagos.
- Call on: 07000022555832
- Send them an email: help@kuda.com.
Frequently Asked Questions (FAQs)
Can I get a loan from Kuda?
Yes, Kuda gives loans. However, you can only be eligible when you use the mobile app regularly.
Is the Kuda Bank registered in Nigeria?
Yes, they are registered by the Central Bank of Nigeria (CBN).
What makes Kuda different from other banks?
They do not have a branch anywhere in Nigeria. You just need your smart phone.
How much interest does Kuda charge on their loan?
Kuda charges 0.3% daily on the loan amount until the total loan amount is repaid by the customer.
How much loan can I get from Kuda Bank?
They give up to N150, 000 in loans as overdrafts to their customers.
In conclusion
Kuda Bank gives affordable loans to customers, and their application process is simple and straightforward.
Individuals can apply for the loan through their mobile app, which is friendly and easy to use.
In addition, the repayment plan is flexible with an affordable interest rate, which makes the repayment hassle-free.
Finally, make sure you borrow the loan you can comfortably repay so as to avoid any penalty or legal action from the bank.
If you have any questions regarding how to borrow money from Kuda Bank, please let us know in the comment section.
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