Kuda is a digital bank that offers a range of financial services, including personal loans. If you are looking for a fast and convenient way to borrow money, you might want to consider applying for a Kuda loan. In this article, we will explain everything you need to know about Kuda loans, such as how they work, how to qualify, how to apply, and what are the interest rates and fees.
Table of Contents
- What is a Kuda Loan?
- How Does Kuda Loan Work?
- How To Get a Loan On Kuda
- How Much Can I Borrow from Kuda?
- How Long Do I Have to Repay a Kuda Loan?
- What is Kuda Loan Interest Rate?
- What are the Fees for a Kuda Loan?
- How To I Qualify for a Kuda Loan?
- How Do I Repay a Kuda Loan?
- What are the Benefits of a Kuda Loan?
What is a Kuda Loan?
Kuda loan is a short-term credit facility offered by Kuda Bank to its customers. This loan product is designed to provide quick and easy access to funds, making it an ideal choice for those looking to address urgent financial needs, such as paying bills or covering unexpected expenses.
How Does Kuda Loan Work?
Kuda loan works like any other personal loan, except that you can apply and get approved entirely on your smartphone using the Kuda loan app. You don’t need any collateral or guarantor to get a Kuda loan. All you need is a verified Kuda account and a good credit history.
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How To Get a Loan On Kuda
To apply for a Kuda loan, you need to follow these steps:
– Download the Kuda app from the Google Play Store or the App Store and sign up for an account.
– Complete your profile and verify your identity with your BVN and a valid ID card.
– Link your debit card or bank account to your Kuda account and fund it with at least ₦100.
– Tap on the “Loans” icon on the app and select “Apply for a Loan”.
– Enter the amount you want to borrow and the repayment period. You will see the interest rate and the total amount you have to repay.
– Review the terms and conditions and accept them if you agree.
– Enter your Kuda loan code, which is a four-digit PIN that you create when you sign up for Kuda.
– Confirm your loan request and wait for approval. This usually takes a few minutes.
– If approved, you will receive the funds in your Kuda account instantly. You can then withdraw it to your linked bank account or card, or use it to pay bills or send money on the app.
Read also: How To Get A Specta Loan
How Much Can I Borrow from Kuda?
The amount you can borrow from Kuda depends on your credit score and how regularly you use your Kuda account. The more transactions you make on your account, the higher your credit limit will be. The minimum amount you can borrow is ₦10,000 and the maximum amount is ₦200,000.
How Long Do I Have to Repay a Kuda Loan?
The repayment period for a Kuda loan ranges from 14 days to 90 days. You can choose the repayment period that suits your budget and cash flow. You can also repay your loan in full or in installments before the due date without any penalty.
What is Kuda Loan Interest Rate?
The interest rate for a Kuda loan is fixed at 0.3% per day. This means that if you borrow ₦10,000 for 30 days, you will have to repay ₦10,900 at the end of the term. The interest rate is calculated based on the outstanding balance of your loan, so the faster you repay, the less interest you will pay.
What are the Fees for a Kuda Loan?
There are no hidden fees or charges for a Kuda loan. You only pay the interest rate that is shown on the app when you apply. There is no origination fee, processing fee, late payment fee, or prepayment fee.
However, if you default on your loan or fail to repay on time, your credit score will be affected and you may not be able to access other financial services from Kuda or other lenders.
How To I Qualify for a Kuda Loan?
To qualify for a Kuda loan, you need to meet the following criteria:
– You must be at least 18 years old and have a valid Nigerian phone number.
– You must have a verified Kuda account with your BVN and ID card.
– You must have an active debit card or bank account linked to your Kuda account.
– You must have a good credit history and no outstanding loans with other lenders.
– You must use your Kuda account regularly for transactions such as deposits, withdrawals, transfers, bill payments, etc.
Read also: How To Get A Specta Loan
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How Do I Repay a Kuda Loan?
To repay a Kuda loan, you need to follow these steps:
– Make sure you have enough funds in your Kuda account or your linked bank account or card.
– Tap on the “Loans” icon on the app and select “Repay Loan”.
– Choose the amount you want to repay and the source of funds.
– Enter your Kuda loan code and confirm the payment.
– You will receive a confirmation message and a receipt on the app.
You can also enable auto-repayment on the app, which allows Kuda to deduct the loan amount from your account or card on the due date automatically. This way, you don’t have to worry about missing a payment or incurring late fees.
What are the Benefits of a Kuda Loan?
Kuda offers several loan benefits, such as:
– Fast and easy application process: You can apply for a Kuda loan in minutes and get approved instantly on your phone. You don’t need any paperwork or physical verification.
– Flexible repayment options: You can choose the repayment period that suits your needs and repay your loan in full or in installments. You can also repay early without any penalty.
– Competitive interest rates: You only pay 0.3% per day, which is lower than many other lenders in Nigeria. You also save money by avoiding hidden fees and charges.
– Convenient access to funds: You can access your loan funds anytime, anywhere on your Kuda account. You can also use them to pay bills or send money on the app.
– Improved credit score: By repaying your loan on time, you can improve your credit score and increase your chances of getting higher loans or better financial services from Kuda or other lenders.
Read also: How To Get A Specta Loan
Read also: Top 20 Loan Apps In Nigeria
Conclusion
A Kuda loan is a great option for anyone looking for a quick and convenient way to borrow money. Whether you need to pay for an emergency, a project, or a personal goal, you can rely on Kuda to provide you with a loan that suits your needs and budget. All you need is a verified Kuda account and a good credit history.
If you are interested in applying for a Kuda loan, you can download the Kuda app from the Google Play Store or the App Store and sign up for an account today. You can also visit the Kuda website or contact their customer support team for more information.
