For many years, people have depended on money lenders or physical banks for loans to solve financial emergencies. As most of these institutions offer strict conditions, getting a loan from them can be difficult.
Thanks to online loan providers, it has become possible to get a loan without leaving your home. To make things easier for their customers, these companies do not require collaterals.
Kuda is an example of such companies. With its Kuda Loan, this company stands as an ideal source for emergency cash. Now here’s everything you need to know about this service.
What is Kuda Loan?
The Kuda Loan is the money lending service from the Kuda Microfinance Bank. But instead of offering actual loans, the service allows customers to get an overdraft from their account.
How Does Kuda Loan Work?
Kuda Loan allows its customers to borrow money as overdrafts. With this feature, applicants can withdraw more than the amount in their savings account. Instead of waiting for customers to request the overdraft, Kuda offers this service automatically.
Is Kuda Loan Legit?
Kuda Loan is a product from a CBN licensed bank. With this in mind, this service is fully legit and free of scams. But before you use this service, it is recommended that you perform an online search and check out reviews about the Kuda Loan.
Qualifications and Requirements
As the Kuda Loan is a digital bank, it does not place tough requirements on its customers. Now here are the conditions that you should meet before Kuda offers an overdraft
- Must sign up and upgrade your Kuda account
- Must be a regular user of the Kuda account
- A mobile device
- An internet connection
- A valid means of identification
- The Kuda App
What is the Interest Rate for Kuda Loan?
On the interest rate, Kuda places a daily interest rate of 0.3% of the amount overdrawn during the length of the overdraft. However, the interest will be applied by midnight of the date of disbursement.
How to Apply for Kuda Loan?
- Start by opening the Borrow tab on the Kuda App.
- Select Get Your Overdraft
- If you are satisfied with the offered overdraft, type in the amount that you want to borrow and Submit.
- Verify the transaction with your biometrics and transaction pin. After a few minutes, your online wallet will be credited with your requested amount.
How to Pay Back Kuda Loan?
Kuda deducts the overdraft and accumulated interest automatically from your account.