Kuda Loan: Are you looking for an urgent loan without documentation in Nigeria? In today’s fast-paced world, access to funds when needed can be a game-changer for individuals and businesses alike.
As Nigeria’s first digital-only bank, Kuda Bank has gained popularity for its innovative banking services and financial solutions tailored to the needs of Nigerians.
One such solution is the Kuda Loan, which offers a seamless and flexible way to access funds for various purposes.
In this guide, we’ll take a deep dive into how to borrow money from Kuda, eligibility criteria, and everything else you need to know about Kuda loans.
What is Kuda Loan?
A 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.
Unlike traditional bank loans in Nigeria, Kuda loans come with more flexible terms. It is also called Kuda Bank Overdraft. Borrowers can easily access loans on the Kuda app within minutes and without collateral.
The loan also comes with flexible requirements. However, before exploring how to be eligible for Kuda loan see the features.
Why Choose Kuda Loan?
Loans on Kuda come with lots of features, including:
- Instant and paperless application process: With the Kuda app, applying for a loan is a breeze. The entire process is digitized, eliminating the need for physical documents and lengthy wait times.
- Competitive interest rates: Kuda Loan offers competitive interest rates compared to traditional banks, making it a cost-effective solution for borrowers.
- Flexible repayment terms: Kuda Loan provides various repayment options to suit your financial situation, ensuring that you can comfortably pay back the borrowed amount.
- No hidden charges: Unlike some other loan providers, Kuda Loan has no hidden fees, so you know exactly what you’re paying for.
All these are what made Kuda bank loan flexible than other microfinance loans in Nigeria.
Kuda Bank Loan Requirements
Before learning how to get Kuda Loan, it’s essential to understand the eligibility criteria. To be considered for a loan, you must meet the following requirements:
- Age limit: You must be at least 18 years old.
- Account type: You must have a verified, and active Kuda Bank account.
- Account activity: Your account should show consistent transaction activity over a specified period.
Additionally, if you’re just opening a Kuda Bank account, you may be required to verify your account in order to qualify for a Kuda loan.
Below are some of the documents that may be required:
- Proof of identity: A valid government-issued ID, such as a driver’s license, international passport, or national ID card.
- Proof of address: A recent utility bill, bank statement, or any other document that verifies your residential address.
- Proof of income: Payslips, bank statements, or any other document that demonstrates your ability to repay the loan.
How to Apply for Kuda Loan
Now that you know how to be eligible for Kuda Bank loan, let’s discuss how to apply for a loan on Kuda.
Follow these steps to secure your loan:
Step 1: Download and Set Up the Kuda App
First things first, if you haven’t already got the Kuda app on your phone, you’ll need to download it.
You can find it on the Google Play Store if you’re an Android user, or the Apple App Store if you’re on iOS. Once downloaded, open the app and create your account.
Step 2: Complete the Loan Application Form
Navigate to the “Loans” section within the app. Here, you’ll fill out some essential details—think loan amount, repayment period, and why you need the loan in the first place. Take your time and fill in the details accurately.
Step 3: Upload Required Documents
You’ll have to back up your application with some necessary documents.
These usually include proof of identity, like your National ID or Passport, proof of address, and proof of income, such as your most recent payslip or bank statement.
Step 4: Loan Approval and Disbursement
After you’ve dotted the i’s and crossed the t’s on your application, Kuda will take some time to review it.
If you meet their requirements, you’ll get an approval, and the loan amount will be disbursed directly into your Kuda account.
And there you have it—a step-by-step guide on how to secure a loan from Kuda Bank. Simple enough, right?
Kuda Loan Interest Rates and Fees
Kuda loan’s interest rates vary depending on the loan amount, and repayment term. The interest rate is 0.3% daily, which is equivalent to 9% per month.
To illustrate the interest rate of a Kuda loan, let’s say you borrow ₦10,000 from Kuda at an interest rate of 9% per month. If you choose a repayment period of 1 month, you’ll pay a total of ₦10,900 over the loan period.
In terms of fees, Kuda charges no hidden fee for loan applications, processing, or disbursal. However, it’s worth noting that Kuda may charge a penalty fee on any outstanding loan balance beyond the due date.
How to Repay Your Loan on Kuda
When it’s time to repay your loan, Kuda offers two convenient options:
Direct Debit from Kuda Account
You can set up automatic repayments to be deducted from your Kuda account on the due date.
Alternatively, you can manually transfer the repayment amount to Kuda through the app or any other bank’s mobile app or Internet banking platform.
It’s crucial to make timely repayments to avoid any late fees, negative impact on your credit score, or potential legal actions.
Read Also: How to Access Payday Loans in Nigeria
What is the Kuda Loan Code?
The USSD code for Kuda Bank is *894#. While this code is primarily used for various general banking transactions, it’s possible that you may find an option for loans within the menu after dialing.
To access Kuda Bank loans, the recommended method is through their mobile app. However, if you prefer USSD, you can dial *894# to explore available services, which might include loans.
Still have questions concerning the Kuda loan app or how to get a loan from Kuda? Find your answers below.
Related: How to Borrow 5,000 Naira in Nigeria
Frequently Asked Questions about Kuda Loan App
As you explore the world of Kuda loans, you might have some questions. Here are answers to some common queries:
How much can Kuda borrow?
Kuda offers varying loan amounts based on your eligibility and financial history. However, the maximum loan amount on Kuda app is 200,000 Naira. Note that your creditworthiness, account activity, and other factors will determine the loan amount you are eligible for.
How much can Kuda borrow me for a start?
As a new Kuda customer, the loan amount you can access may be limited. The exact amount will depend on factors like your account activity, credit history, and income. As you build a good transaction history and demonstrate timely repayments, your loan limit may increase over time.
What is the USSD code for Kuda loan?
Currently, Kuda Bank does not offer a USSD code for loan applications or transactions. Kuda is a digital-only bank, and all loan applications are processed through their mobile app, which is available for download on the Google Play Store and Apple App Store.
What happens if I don’t pay my Kuda loan?
If you fail to repay your Kuda loan as agreed, several consequences may follow:
a. Late fees: Kuda may impose additional charges for late or missed payments.
b. Impact on credit score: Non-payment or late payment of your loan can negatively affect your credit score, making it difficult for you to access credit in the future from Kuda or other financial institutions.
c. Legal actions: In severe cases, Kuda may resort to legal actions to recover the outstanding loan amount.
Kuda Loan presents a modern and flexible solution for Nigerians seeking quick access to funds for various purposes. Its competitive interest rates, paperless application process, and hassle-free repayment options make it an attractive option for borrowers.
As you consider taking out a Kuda Loan, remember to research and compare other loan options available in Nigeria to ensure you make the best choice for your financial needs. Stay financially savvy and make the most of Kuda Loan to achieve your financial goals.