Have you been wondering where to get the best low-interest loan facility in Nigeria as an individual or a small business wanting to scale your business, look no more as Kuda Bank is the bank to get that loan sorted. Kuda Bank provides affordable overdraft and recent loan facilities that its loyal customers. Kuda is one of the best financial institutions to get fast loans from without having all the collaterals that traditional banks will request from you to consider you for a loan. Want to get an instant loan from Kuda Bank read on to know more on how to get your fast loan from Kuda.
About Kuda Bank
Kuda Bank started in 2017 as Kudi Money before it changed into Kuda Microfinance Bank, the bank is known as the bank of the free because it offers free transfers to customers when it started and still does so to date for a reasonable number of transfers monthly.
Kuda Bank is fully licensed by the Central Bank of Nigeria (CBN) and is insured by Nigeria Deposit Insurance Corporation (NDIC). Kuda Bank was founded by Babs Ogundeyi and Musty Mustapha. Kuda Bank is run by Babs Ogundeyi as the Chief Executive Officer, while Musty Mustapha is the CTO of the bank. When Kuda was launched it was the first and only mobile-only bank in Nigeria. Kuda functions fully on a mobile platform on both iOS operating systems and Android operating systems.
Does Kuda Bank Give Loans
Yes, Kuda Bank gives overdrafts in the form of loans to deserving customers of the bank who use the bank and the services the bank offers. Kuda has also recently launched a new loan product which it is yet to begin rolling out for customers to be able to access loans from the Kuda Bank app.
The Kuda overdraft is a short-term loan that is given to Kuda account holders the Kuda overdraft can be taken at any time provided you are eligible and have an overdraft limit. You need to be using your Kuda account regularly to be eligible for the Kuda overdraft.
Kuda Bank Loan Interest Rate
Kuda Bank loan interest rate on its overdraft is put at 0.3% daily of the overdraft amount daily until you are able to completely pay off the overdraft. This interest rate makes Kuda one of the best banks to take out a seemingly loan facility at an interest rate that is very low and flexible to manage. The daily interest rate is equivalent to 9% per month, but the idea is that the overdraft should not even reach 30 days before it will be repaid for each time a customer takes an overdraft.
Kuda Loan Types
Kuda Bank offers two main types of loans to active customers of the bank. The loans are:
Kuda Loan: The Kuda loan is a one-off payment made into a customer’s Kuda account which the customer who applies for such loan is expected to repay with interest, in fixed monthly payments the customer agrees to before their loan application is approved. With the Kuda personal loan, you can get up to ₦200,000 instantly.
Kuda Overdraft: The Kuda Overdraft is a short-term loan given to customers who apply provided they use their Kuda account regularly. The Kuda overdraft requires no paperwork and has a fixed interest rate of just 0.3% daily.
Kuda Bank Loan Eligibility
To be eligible for the Kuda Bank overdraft you need to meet the eligibility requirements which include:
- You need to have an active Kuda Bank account with regular account activity over a month or more
- You must be of the legal age of 18 at least
- Your Kuda Bank account must be fully verified
Kuda Bank Loan Application Process
Applying for a Kuda Bank loan takes a straightforward process that lasts less than five minutes and your loan will be disbursed to your Kuda account if you satisfy all the requirements. To apply for a Kuda loan follow these steps:
- Login to your Kuda Bank app
- Click on the borrow button at the top section of the Kuda app
- Select overdraft or loans, then input the amount of money you wish to borrow
- Fill in the other required information
- Input your transaction PIN then submit and wait for your loan to be disbursed into your account immediately if your account is eligible for a loan
Benefits of Kuda Bank Loan
The Kuda overdraft is very beneficial to both businesses and individuals who make use of their Kuda account regularly. Some of the benefits of Kuda loan include:
- You always have access to funds with Kuda overdraft
- You get to spend and save with a Kuda Bank account
- Funds disbursement is instant
- Kuda overdraft helps your financial stability
Pros & Cons of Kuda Bank Loan
Kuda Bank loan has several advantages to help your finances and small and medium business expansion, but it also has a few downsides.
Pros of Kuda Loan
- No collateral required
- No hidden charges
- The interest rate is low and very competitive with industry-standard rates
Cons of Kuda Bank Loan
- Customer service is not so great and needs to be improved
- Too frequent updating of the Kuda Bank app
Kuda Bank loans have come to stay, the bank app is very user friendly and their overdraft interest rate is very affordable if the customer does not allow the overdraft to over the short period it was designed for. As Kuda Bank continues to grow more users will come to use the Kuda Bank loan, which will lead to more Kuda account sign-ups by such loan seekers.