Kuda Bank is a popular digital bank in Nigeria. It offers a simple way to manage your money using your phone. Many people use Kuda for savings, payments, and transfers. But not everyone knows you can also borrow money from Kuda.
This post explains how to borrow money from Kuda, step by step.
Does Kuda Give Loans?
Yes, Kuda gives short-term loans to eligible users. But it is not open to everyone. The loan option is available only to people who qualify based on their account activity. If you use your Kuda account regularly for transactions like deposits, transfers, and payments, you stand a better chance of getting a loan offer.
Kuda calls its loan service Kuda Overdraft.
What is Kuda Overdraft?
Kuda Overdraft is a short-term loan that helps you complete transactions even if you don’t have enough money in your account. You can borrow small amounts quickly, and repay later with a little interest.
The loan period is usually short, often within a few days or weeks, depending on your loan terms.
Steps to Borrow Money from Kuda
- Download and Set Up the Kuda App
If you don’t already have the Kuda app, download it from the Google Play Store or Apple App Store. Sign up and verify your account. - Use Your Kuda Account Regularly
To qualify for a loan, you need to use your account often. This includes receiving money, sending money, paying bills, and saving. - Check for Loan Offers
If you qualify, Kuda will notify you inside the app. To check:- Open the Kuda app
- Go to the “Borrow” section
- If you see an available overdraft offer, it means you can borrow
- Request the Loan
If you have an overdraft offer:- Tap on “Borrow”
- Review the loan amount, interest rate, and repayment period
- Accept the terms
- The money will be added to your balance instantly
- Repay the Loan
Repayment is simple. Kuda automatically deducts the loan and interest from your account when money comes in. So, always make sure you have enough balance before or on the due date to avoid default.
Who Can Borrow from Kuda?
Not everyone gets a loan immediately. Kuda decides based on:
- How active your account is
- How much you use the app for payments and transfers
- Your savings history
- How you handle previous overdrafts (if you’ve used one before)
The more you use your Kuda account, the higher your chance of getting a loan offer.
How Much Can You Borrow?
Kuda loans start small. For first-time borrowers, the amount may be low. But if you repay on time, Kuda can increase your loan limit over time.
The exact amount varies for each user, based on your account activity and previous borrowing history.
How Much is the Interest?
Kuda charges a small daily interest on overdrafts. The interest rate is shown clearly before you accept the loan. Make sure you understand the total cost before borrowing.
What Happens If You Don’t Repay?
If you fail to repay your Kuda loan:
- Kuda will deduct the money automatically when your account receives funds
- Your credit score may be affected
- You may lose access to future loans from Kuda
To avoid problems, always repay your loan on time.
Final Thoughts
Borrowing money from Kuda is simple for active users. But loans are not free money. Borrow only when necessary, and be sure you can repay on time.
If you use your Kuda account well, save regularly, and keep good records, you increase your chances of getting higher loan offers.
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