Kuda Bank Loan: How To Apply For Loan And Borrow Money From Kuda Bank App

0 7 minutes read

Are you in need of a loan? Here is a step-by-step guide on How To Apply For Loan And Borrow Money From Kuda Bank App

Aside from sending and receiving money using Kuda you can also buy Airtime, data, pay bills, and perform other banking activities on the Kuda app.

It might also interest you to know that you can also borrow money using the Kuda bank app.

There are several reasons why someone might need to apply for a loan.

Either to settle a debt, for an emergency, or for a business start up. whatever the case may be, we know that coming here shows that you need a loan.

We will be guiding you on the things you should know about How To Apply For Loan And Borrow Money From Kuda Bank App.

About Kuda Microfinance Bank

Kuda Bank is an online banking system that provides banking services through its mobile app.

Kuda Bank was formerly known as Kudi Money and Kuda Microfinance Bank.

It was licensed and approved as the first mobile-only bank in Nigeria by the Central Bank Of Nigeria in 2017. its headquarters in London, United Kingdom.

It has made banking more accessible to its customers through the use of USSD codes.

Also, it has rapidly become a popular choice for many users seeking a seamless and user-friendly banking experience.

Kuda Bank offers a range of online banking services that cater to the needs of tech-savvy individuals.

They are also committed to providing innovative solutions is evident in their efficient online banking platform.

One of the standout features of Kuda Bank is a unique service that streamlines the process of account opening.

This service allows customers to easily create an account and perform transactions swiftly, with no need for physical visits to banking halls or the hassle of filling out cumbersome forms.

Kuda Bank can also offer you a loan if they can successfully verify your bank statement and you pass their automated loan eligibility checks.

The loan amount they will give you will also depend on the results of their loan eligibility checks.

So, what is the Kuda Bank Loan?

What’s a Kuda loan?

Before we delve into How To Apply For Loan And Borrow Money From Kuda Bank App, let’s quickly brief you about what the Kuda Loan is.

Kuda is a digital bank in Nigeria that offers various financial services, including personal loans.

They provide loans to individuals based on certain criteria such as creditworthiness, income, and repayment history.

A Kuda loan is a one-off payment made into your Kuda account which you’ll repay, with interest.

The interest is fixed depending on your loan amount and it will be paid monthly which you will agree to before you’re granted the loan.

The Kuda bank loan is also called “an overdraft”

What are the eligibility criteria to get a loan from the kuda app?

You must be a Nigerian
You must be up to 18 years -55yrs old
You must have a valid Identity Card
You must have a BVN
You must have the app installed on your phone.
You must be an active user of the Kuda Bank app

What is the Kuda Loan Interest Rate?

The interest rate of Kuda loam is 0.3% daily of the total amount borrowed until the full payment of the Money is made.

For example, a loan of N30,000 will have N90 daily interest. If the loan tenure is 30 days(1 Month), a total interest rate of N2,700 would be obtained. The total amount to be repaid back will be N32,700.

How to Download the Kuda App

Before we go ahead and talk about How To Apply For Loan And Borrow Money From Kuda Bank App, you need to have the Kuda Bank Mobile app.

As such, here are the steps to download the app.

To download the Kuda Bank mobile app, follow these simple steps:

Open the Google Play Store (if you have an Android phone) or the App Store (if you have an iPhone).
In the search bar, type “Kuda” and press enter.
Look for the official Kuda app developed by “Kuda Technologies Ltd.”

Make sure it’s the correct app by checking the app icon and description.

Tap on the app to open its download page.
Click on the “Install” or “Get” button to start downloading the app.
Once the download is complete, open the app and follow the on-screen instructions to sign up or log in to your Kuda account.

How To Apply For Loan And Borrow Money From Kuda Bank App

Before you can obtain a Kuda bank loan or overdraft, the following should be done:

Firstly, you must have the app installed on your Smartphone.

Then you will have to sign up on the Kuda bank app.

You will be requested to input your details such as name, phone number, email address, and other information.

Also, you need to upgrade your account by linking your account with your Bank Verification Number (BVN) and National Identification Number (NIN).

You should also ensure that you use the Kuda bank app regularly, this will increase the chances of granting you your desired loan.

Here are steps to guide you on How To Apply For Loan And Borrow Money From Kuda Bank App.

Launch the Kuda app and swipe to your borrowed account.
Click on borrow.
Click on Get your Overdraft.
Click on next.
Enter the amount you want to borrow and then click done.
Verify it’s you by inputting your transaction ID, your PIN, face ID, or fingerprint.

How to repay my loan

Having taught you How To Apply For Loan And Borrow Money From Kuda Bank App, it is essential to know when and how to pay it back.

If you’re able to pass the eligibility criteria, you also accept the terms and conditions attached and you are being granted the loan, repaying back the loan wouldn’t be an issue.

You will be required to add a debit card to your account while applying for the loan and your card will be charged whenever your loan is due for repayment.

The required amount will be debited from your card.

What Are The Consequences Of Not Repaying My Loan On Time?

If you fail to pay back your Kuda loan on time, there can be several consequences. Here are some potential outcomes:

Late payment fees: Kuda may charge you additional fees for late repayment. These fees can vary depending on the terms of your loan agreement.
Negative impact on credit score: Non-payment or late payment of loans can have a negative impact on your credit score. This can make it more difficult for you to access credit in the future from Kuda or other financial institutions.
Threat messages: You may start getting threat messages if you fail to repay your Kuda loan on time. To avoid that, it is better you inform them on time about your inability to repay back the loan at the moment.
Legal action: In extreme cases, if you consistently fail to repay your loan, Kuda may pursue legal action against you. This can result in additional costs and potential damage to your credit history.

It’s important to communicate with Kuda if you are facing difficulties in repaying your loan. They may be able to offer you options such as restructuring the loan or setting up a payment plan.

Conclusion on How To Apply For Loan And Borrow Money From Kuda Bank App

Kuda is a digital bank that operates through a mobile app.

It provides various banking services such as account opening, money transfers, bill payments, and more.

Kuda loan is a feature within the app that allows eligible customers to borrow money for personal or business needs.

The loan amount and interest rate depend on factors like the customer’s credit history and income.

Loan repayment with Kuda is usually done through automatic deductions from your Kuda account.

The app will deduct the agreed-upon loan amount, including any interest or fees, from your account on the specified repayment date.

Frequently Asked Questions(FAQ) on How To Apply For Loan And Borrow Money From Kuda Bank App

Why am I not eligible to borrow from Kuda?

You may have tried applying for a loan on the Kuda app but it wasn’t granted.

The loan is only available for people who are qualified to use it.

Here are some reasons why you were not granted the loan.

It may be because you don’t have a valid ID, You don’t have a BVN Or you’re not an active user of the Kuda app.

Can I log into my Kuda account with another device?

Yes, it’s possible for you to log into your Kuda account on any device.

Any time there’s a sign-in to your Kuda account on a new device, we normally put your account on Safety Mode for 24 hours.

This is helpful for protecting your money in case you’re not the one who signed in to your account.

Your daily transfer limit will become 10,000 naira. But this limit does not in any way affect other kinds of payment from your account. This is called “safety” mode on the Kuda bank app.

The Safety Mode will only be active for just 24 hours starting from the time you sign in to your Kuda account on a new device.

You will be able to increase your daily transfer limit after 24 hours.

What happens when my loan repayment is due?

Loan repayment with Kuda is usually done through automatic deductions from your Kuda account.

The app will deduct the agreed-upon loan amount, including any interest or fees, from your account on the specified repayment date.

It’s important to ensure you have enough funds in your account to avoid any issues with repayment.

Do I need a guarantor to get a loan from Kuda?

A guarantor is someone who agrees to repay the loan if you are unable to do so. They provide an additional layer of security for the lender. No, you don’t need any guarantor to get a loan from the Kuda app but you can as well provide a guarantor to increase your chances of getting the amount you would like to borrow. Having a guarantor increases your chances of getting approved for a loan.