Kuda Loan App – Kuda Bank, also known as “The Bank of the Free,” is a digital microfinance institution that offers a plethora of banking solutions to Nigerians. With its dual headquarters in Lagos and London, Kuda has a digital presence across all Nigerian states.
The Scope of Kuda Services
From savings and bank transfers to loans and bill payments, Kuda Bank App is a one-stop-shop for all your financial needs. See SongaCash Loan App Kenya
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Understanding Kuda Loan Overdraft
How It Works
Once you’ve downloaded the Kuda app and set up your account, you can start using it for various transactions. After some time, Kuda will extend an overdraft offer to you, which you can access through your Borrow account.
Interest Rates
Kuda charges a daily interest rate of 0.3% on the overdraft, which you’ll need to repay within a period ranging from 30 to 90 days.
Step-by-Step Guide to Applying for Kuda Loan Overdraft
Accessing Your Borrow Account
To kickstart the process, open the Kuda app and navigate to your Borrow account. Learn about Zuri Cash Loan App Kenya
Checking Eligibility
Tap the “Borrow” button to check if you qualify for the overdraft. If you do, you’ll see an option to proceed.
Confirming the Transaction
After reviewing the overdraft amount and interest rate, you can either accept or decline the offer. If you accept, you’ll need to confirm the transaction with your PIN, Fingerprint, or Face ID.
Eligibility Criteria
New vs. Regular Users
If you’re a new user or haven’t been actively using the app, you might find yourself ineligible for the overdraft initially.
Active App Usage
Regular usage of the app for transactions like transfers and bill payments enhances your eligibility for an overdraft.
Terms and Conditions
Acceptance Window
Once you receive an overdraft offer, you have three business days to either accept or decline it. This Carbon Loan App Kenya
Repayment Schedule
The overdraft must be repaid on or before the maturity date, along with the accrued interest.
Interest Rates and Duration
Daily Interest
The daily interest rate of 0.3% starts accumulating from the day the loan is disbursed.
Overdraft Duration
The overdraft generally lasts for 30 days from the disbursement date.
Overdraft Limits
Initial Limits
For first-time borrowers, the maximum overdraft limit is usually capped at 150,000 Naira.
How to Increase Your Limit
Timely repayment of your initial loans can make you eligible for higher overdraft amounts in the future.
Repayment Process
Steps to Repay
To repay your overdraft, you’ll need to deposit money into your Kuda account and then follow the in-app instructions to complete the repayment.
Instalment Options
Kuda allows you the flexibility to repay your overdraft in instalments, provided the full amount is cleared by the due date.
Consequences of Default
Auto-Debit Feature
If you fail to repay the overdraft by the due date, Kuda will automatically debit any incoming funds to your account. In an era where convenience is paramount, Kuda Bank is not lagging behind. The bank offers a USSD code service that allows you to secure a loan without the need for an internet connection. But how does this work, and what are the advantages? See Cloud Loan App Kenya
What is a USSD Code?
USSD (Unstructured Supplementary Service Data) is a communication technology that enables the transmission of information through a mobile network. It’s a quick and efficient way to interact with your bank, especially when you don’t have internet access.
The Magic of *894#
Kuda Bank’s USSD code for loans is *894#. This simple code is your gateway to instant loans, right from the palm of your hand. All you need to do is dial this code, and you’ll be presented with a series of prompts to guide you through the loan application process.
How to Use the USSD Code for Loans
- Dial the Code: Start by dialing *894# on your mobile phone.
- Select Loan Option: You’ll be presented with a menu of options. Choose the loan option to proceed.
- Follow the Prompts: The system will guide you through the necessary steps to complete your loan application.
Why Opt for USSD Loans?
Here are some compelling reasons to use the USSD code for your next Kuda loan:
- Accessibility: The service is available 24/7, making it incredibly convenient.
- No Internet Needed: This is particularly useful if you’re in an area with poor internet connectivity.
- Quick Process: The USSD code method is usually faster than logging into an app or website.
- Secure: USSD codes are generally secure, offering an additional layer of protection for your transactions. Learn about Kashbean Loan App Kenya
Legal Actions
In extreme cases, Kuda reserves the right to take legal action to recover the loan, with the legal fees added to your outstanding balance.
FAQs
- Why can’t I access Kuda overdraft?
- If you’re a new or inactive user, you may initially be ineligible for an overdraft.
- How can I increase my Kuda overdraft limit?
- Consistent and timely repayments can boost your creditworthiness, thereby increasing your overdraft limit.
- What is the maximum amount I can borrow?
- The maximum overdraft limit is 150,000 Naira, although this may vary based on your repayment history.
- What happens if I default on my Kuda loan?
- Kuda will auto-debit your account and may impose additional charges. Legal action is also a possibility.
- Can I repay my overdraft in instalments?
- Yes, Kuda allows for instalment payments as long as the full amount is repaid by the due date.
Conclusion
Kuda Bank’s overdraft feature is a convenient and flexible short-term loan option that caters to a variety of financial needs. With its user-friendly app and transparent terms, Kuda is solidifying its position as one of Nigeria’s leading digital banking solutions. Whether you’re looking to cover an emergency expense or finance a short-term project, Kuda has got you covered.
