Getting a loan has become super easy with online loan apps, making life simpler for people who don’t want to deal with the complicated requirements and visits to traditional banks. One such app that takes away the loan hassle is Kuda Loan. It’s a quick guide on how to use the Kuda Bank app to borrow money and answers some common questions you might have.
With Kuda Loan, you don’t have to worry about providing collateral or visiting a bank. You can do it all from your phone or computer.
This article will explain in simple terms how to apply for a loan using the Kuda Bank app. It will also cover other things you might want to know about Kuda Bank.
What is Kuda Loan
Kuda Bank offers the Kuda Loan, a swift and hassle-free short-term credit solution for addressing urgent financial needs in Nigeria. This innovative product, also known as Kuda Bank Overdraft, stands out with its flexibility, enabling customers to access funds swiftly through the Kuda app, all without requiring collateral.
Kuda Loan’s user-friendly interface and relaxed eligibility criteria make it a game-changer in the Nigerian lending landscape, providing quick relief for bills or unexpected expenses. This customer-centric approach redefines how individuals access and manage short-term credit, emphasizing ease, speed, and accessibility in a financial market often dominated by traditional banks.
How to apply for loan and Borrow Money From Kuda Bank App
Download the Kuda App
The first step in applying for a Kuda loan is to download and install the Kuda app on your mobile device. You can find the app on the Google Play Store for Android users or the Apple App Store for iOS users. Once the app is downloaded, open it and proceed to create your Kuda account. This account will serve as your gateway to the loan application process.
Fill the Application Form
With your Kuda account set up, navigate to the “Loans” section within the app. Here, you will find the loan application form that you need to fill out. Take your time to provide accurate information on the form, as this will play a crucial role in determining your eligibility for the loan. Key details to include in the application form are:
- Loan amount: Specify the amount you wish to borrow.
- Repayment period: Choose a repayment period that suits your financial circumstances.
- Loan purpose: Explain why you need the loan, whether it’s for personal expenses, business investment, or any other valid reason.
Upload Required Documents
To strengthen your loan application, you will need to provide supporting documents. These documents help verify your identity, address, and income. Commonly required documents include:
- Proof of identity: Provide a copy of your National ID card or Passport.
- Proof of address: Submit a document that confirms your current address, such as a utility bill or rental agreement.
- Proof of income: Include your most recent payslip or bank statement to demonstrate your ability to repay the loan.
Ensure that the documents you upload are clear and legible to expedite the review process.
Loan Approval and Disbursement
After you have submitted your loan application and supporting documents, Kuda Bank will review your application. This review process may take some time as the bank assesses your eligibility based on their criteria. If your application meets their requirements, you will receive loan approval.
Once your loan is approved, the loan amount will be disbursed directly into your Kuda account. You can then use these funds for the intended purpose, whether it’s covering personal expenses, investing in your business, or addressing any other financial need.
Kuda Loan Interest Rates and Repayment Options
Kuda Bank’s loan interest rates depend on how much you borrow and how long you take to pay it back. They charge 0.3% interest per day, which equals 9% per month. For example, if you borrow ₦10,000 and pay it back in 1 month, you’ll pay a total of ₦10,900.
Kuda doesn’t hide any extra fees for applying, processing, or getting your loan. But, keep in mind that if you don’t pay your loan on time, they might charge you a penalty fee for the overdue amount. This way, you know exactly what you’re getting into when you borrow money from Kuda Bank. However, Yu can repay your Kuda Loan by simply funding your Kuda account, The funds used in funding your Kuda bank account would be used automatically to cover your debt.
Kuda Loan Debt Management Tips
When you borrow from Kuda, be careful. Only take what you really need to avoid too much debt. Plan how you’ll pay it back before you borrow, so you can make payments. Make a budget that includes your loan repayment plan and stick to it. Pay on time to keep a good credit score, which will help you get loans in the future.
Can I get loan on Kuda app?
Yes, you can obtain a loan through the Kuda app. The app allows you to access loans of up to ₦200,000 quickly and easily. You can complete the loan application process within minutes, and the repayment can be made in manageable monthly installments over a period of up to three months. Additionally, you have the option to enhance your loan eligibility by involving a guarantor. Kuda app provides a convenient and accessible way to secure the financial assistance you need, making it a valuable tool for those seeking hassle-free loans.
How do I activate my Kuda loan?
To activate your Kuda loan, follow these simple steps within the Kuda app:
- Open your Kuda app and locate the “Borrow” option, which you can either tap or swipe to access.
- Once in the “Borrow” section, select “Get Your Overdraft.”
- Click on “Next” to proceed with your loan application.
- You’ll have the opportunity to specify the amount of money you wish to borrow.
- Finally, confirm your loan application by entering your transaction PIN, using your fingerprint, or utilizing face ID authentication.
By following these steps, you can easily activate your Kuda loan and access the funds you need to meet your financial requirements.
Can I borrow money from Opay?
Yes, you can borrow money from Opay conveniently using a USSD code. To access loans through Opay, follow these simple steps:
- Dial *955# from the phone number you used to register your Opay account.
- Select the “loans” option from the menu.
- Follow the on-screen prompts to provide any required information or documentation.
Opay’s USSD code allows you to quickly and easily apply for loans, making it accessible for individuals seeking financial assistance without the need for complex processes or visits to physical locations. It’s a convenient way to address your immediate financial needs through the Opay platform.
Is Kuda Bank better than Opay?
Kuda Bank and Opay offer distinct advantages, making it challenging to definitively say one is better than the other as it depends on individual preferences and needs. Kuda provides a generous monthly allowance of 25 free transfers, whereas Opay offers three times the limit in a day. Both banks offer physical and virtual debit cards, simplifying online transactions. Kuda may be preferable for those needing consistent monthly transfers, while Opay might suit those with higher daily transfer needs. Ultimately, the choice between Kuda and Opay depends on your specific usage patterns and priorities, as both offer valuable services in the digital banking space.
Is Kuda a dollar account?
No, Kuda Microfinance Bank does not offer US dollar accounts. Kuda operates exclusively in Nigerian naira and does not provide foreign currency accounts, including US dollar accounts. If you require the ability to receive international payments in US dollars, you would need to open a US dollar account with a traditional Nigerian bank or a financial institution that provides such services. Kuda primarily focuses on naira-denominated accounts and services, catering to the domestic financial needs of its customers within Nigeria.
Kuda Loan is a user-friendly and flexible choice for Nigerians who need quick access to money for different reasons. It offers good interest rates, a simple application process without a lot of paperwork, and easy repayment options, making it a great option for borrowers.
But before you go for a Kuda Loan, it’s smart to look at other loan choices available in Nigeria. This way, you can be sure you’re picking the right one for your financial needs. Just remember to be smart with your finances and use Kuda Loan to help you reach your money goals.