How to Borrow Money from Kuda App in Nigeria | A Step-by-Step Guide

In today’s fast-paced world, one needs money at their beck and call. If you are thinking of borrowing from Kuda, this is the right post for you. Kuda, popularly known as the “Bank of the Free,” makes it seamless and very easy to access loans right from your smartphone.

If you have questions like, “Can I borrow money from Kuda Bank?” The answer is yes. This guide will walk you through the entire process to ensure that you fully understand each step of how to borrow money from Kuda Bank.

Are you curious in response to your query about how can I borrow money from my Kuda account? Say you are in an emergency or need that extra cash to help you survive a day or more before the next paycheck—Kuda has your back on this.

You can get a loan using the Kuda app by merely tapping your screen. This detailed guide will explain how to borrow money from the Kuda App, outlining the eligibility criteria, the application process, and some helpful tips toward a seamless borrowing experience.

By the end of this article, you will have seen how to borrow money from Kuda and maximize your account. Let’s get into the step-by-step approach to applying for a loan through one of Nigeria’s most innovative digital banks.

Brief Overview Of Kuda Bank

Kuda is a digital bank designed for ease and safety in managing finances. The user-friendly app allows easy opening of bank accounts, flexible loans, bill payments, fund transfers, and management of savings accounts.

Kuda Bank provides ease of transactions with debit cards and low service fees.

It would help if you were above 18 years, had a valid means of identification, a smartphone, an active phone number, and an email address.

Download the app and sign up with a valid ID to access Kuda Bank’s services.

Kuda Bank allows users to enjoy smooth and secure banking. With the bank’s focal points being digital innovation and ease of use for its customers, it attracts many who want ease and flexibility when handling their finances.

Read Also – How To Login On Kuda With Email, Phone Number, Password

Can I Borrow Money From Kuda Bank?

Kuda Bank can give you cash through their loan feature—Kuda Overdrafts. This product allows one to pull out money over the available balance up to a predetermined limit.

The overdraft limit shall be driven individually, depending on the activity one has and continued transactions.

Unlike traditional loans characterized by complex and cumbersome approval processes, Kuda’s overdrafts are designed to be fast and easy.

Interest shall be paid on the facilities granted, and every deposit made into your account shall repay this automatically.

This simplified repayment relieves one from the troubles of the scarcity of funds, which has, in turn, burdened his life. 

At Kuda Bank, they pride themselves on transparency, and no fee shall be debited from your account without knowing what it is for because all charges are specified in the app.

Finally, the answer to this question, “Can I borrow money from Kuda Bank?” is yes. In essence, the overdraft feature in Kuda Bank is very convenient and flexible to the user in borrowing; hence, it offers a sure way of getting money over such times.

What are the Eligibility Requirements for Borrowing Money From Kuda Bank App? 

Anyone who is in desperate need of money and is unsure of how to borrow money from Kuda app can quickly obtain the appropriate amount by using the Kuda app.

The platform provides an extended benefit where users can decide the monthly payment schedule.

Having a guarantor can help increase the chance of availing the desired amount; however, checking whether the lender requires a guarantor is always good. One should also ask if collateral is needed.

The following are specific requirements for using the Kuda Bank app for borrowing: 

1. Identity and residency verification
2. Minimum age, usually 18 years
3. Proof of income or description of employment
4. The bank verification number attached to the Kuda account
5. Pass Kuda Bank’s credit assessment criteria

These requirements ensure a streamlined process for borrowers seeking financial assistance through Kuda Bank.

Also Read – How to Fix “I Can’t Login My Kuda Account” Problem in Nigeria

How to Set Up a Kuda Bank Account for Borrowing?

To start borrowing from Kuda or find out how to borrow from Kuda Bank, you will first have to set up an account with Kuda Bank. Setting up a Kuda Bank account to borrow is pretty straightforward and only involves a few steps;

1. Download the Kuda Bank app from the Google Play Store or Apple App Store.

2. Register with a valid means of identification, such as a national ID card, driver’s license, or international passport.

3. Complete the registration form by entering your name, date of birth, address, and phone number. 

4. Secure your account with a strong password and a PIN or biometrically.

5. Fund your account at least ₦1,000 to activate it.

6. To validate your account, upload a selfie and one of your official picture ID cards.

7. Wait for a moment; this may take up to 24 hours, while your account is under review.

8. Upon approval, you can request a loan from the “Borrow” tab on the app.

Kuda Bank may request further information or documentation to verify your identity or creditworthiness.

How to Borrow Money from Kuda App in Nigeria: Step-by-Step Guide

Kuda, popularly called Nigeria’s first mobile-only bank, gives a hitch-free way to easily strut financial landscapes. This includes money borrowing. Below is a step-by-step guide on how to borrow from the Kuda App:

1: Download and install the Kuda App

• Visit the Apple App Store or Google Play Store. 
• Search for “Kuda Bank”
• For the app to be installed, click the “Download” or “Get” button. 
• Wait for the app to download and get installed on your device

2: Sign Up and Register

• Tap the “Sign up” button on the application’s welcome screen
• Choose the type of ID and the nation where you now reside. 
• Take a clear picture of your ID or upload it from a device
• Fill in your ID number along with other details required
• Create a strong password and secure it either by a PIN or Biometric authentication

3: Make a Deposit

• Tap “Fund account”
• Select the preferred payment method, enter the details required to make a payment, and then confirm the transaction to fund the account.

4: Apply for a Loan

• Tap “Borrow”
• Select the preferred loan amount and repayment term
• Read and agree to the terms
• Get the loan amount in your Kuda Bank account

Note: Kuda Bank is mandated to request more information or documentation to identify yourself or establish your creditworthiness. Additionally, loan terms can change depending on several factors. 

Read Also – Moniepoint, Kuda and Others are Facing Regulatory Issues

What Are the Interest Rates and Repayment Terms for Kuda Bank Loans?

Kuda Bank gives a flexible loan option regarding interest rates and periods for customer satisfaction.

The Kuda overdraft has an interest of 0.3% each day on the borrowed amount once activated until it is fully repaid.

Take, for example, a loan of N20,000, which attracts an interest of N60 daily, totalling up to N1,800 in interest over 30 days. You will end up paying back N21,800 to Kuda.

Loan tenor: 90 days, approximately three months. The loan matures thirty days after it is disbursed.

This puts you in service where the three months can elapse immediately in repayment, though with a one-month grace elapsing after the money has been expended.

The ease with which one can repay, as stated above, is what makes Kuda overdraft flexible and manageable for meeting short-term financing needs.

How to Repay Money Borrowed From Kuda Bank App 

Kuda makes it easy for one to pay his or her loan repayment due with the following two convenient options:

1. Direct Debit from Kuda Account

You can set up automatic repayments to deduct them from your Kuda account on the due date. Therefore, you will never miss any repayment, hassle-free for those who prefer hands-off.

2. Manual Transfers

You can also initiate this right from within the app or any other bank’s mobile or internet banking and make the repayment amount available for Kuda to pick up.

This alternative provides room for more hands-on management of finances.

One can make a timely repayment to avoid late fees, negative effects on one’s credit score, or further litigation.

Timely return fosters a good relationship with the bank, making one continue to qualify for loans from the same institution.

Set reminders on your phone or calendar so you don’t miss a repayment. Even turn on alerts and other notification services that most banking apps, including Kuda, have.

A;lso Read – Kuda Bank Introduces Loans for Salary Earners after Hitting New Record

What Should You Do If You Encounter Issues Borrowing from Kuda Bank?

There should be a couple of things to consider if you are unable to borrow from Kuda Bank:

1. Check Your Eligibility and Credit Score

Ensure you meet Kuda Bank’s loan eligibility criteria, including minimum age and income requirements and a good credit score. You can check your credit score online for free on various platforms.

In case your credit score is bad, get it in order. Pay up outstanding debts and stay clear of new credit inquiries. You will stand a better chance of getting the loan if the eligibility criteria are met and your credit score is fine.

2. Contact Customer Support at Kuda Bank

You can contact Kuda Bank’s customer support in the first instance of any issues you’re facing concerning borrowing from them. You can contact them via their phone number, email, or in-app chat.

Tell them in detail what the problem is, or you will see an error message that you can describe or Take a Screenshot of it. Their customer support will usher you through troubleshooting to lead you to the Solution.

3. Check Your Information and Documents

Ensure all your personal information and documents are accurate and up-to-date. All your names, addresses, and other personal information should tally with those on your ID and other identification documents. 

Secondly, ensure you have attached all the necessary documents, including proof of income and employment. If there is an error or omission in the information, update it and resubmit your loan application.

4. Search For Any Technical Faults on the Website or the App

If this occurs with the Kuda Bank app or website, restart or refresh the browser. Then, consider whether your device’s operating system and browser are current.

Have a good internet connection next. If it doesn’t work, try getting onto the App/website from another device/browser.

5. Read the Terms and Conditions of the Loan.

Recognize the terms and circumstances of each loan package Kuda Bank offers before reapplying. Be sure to understand the percentage charged in interest, the period of repayment, and other fees attached to the loan.

Secondly, understand the repayment schedule and the consequences of late repayment. If you have further questions or are concerned, contact Kuda Bank customer support for further clarification.

Follow these steps to troubleshoot; in the end, you might fix what went wrong when borrowing money from Kuda Bank. Always be patient and insistent; do not feel ashamed to ask for help.

Final Thoughts 

It’s easy to borrow from Kuda Bank. You can borrow money whenever you need it with the help of this advice. You will not have to worry about how to borrow money from Kuda Bank.

Whether you are wondering, “Can I borrow money from Kuda Bank?” or “How can I borrow money from my Kuda account?”, this guide has covered you.

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Frequently Asked Questions 

Reference

• vtu.ng – How to Borrow Money from Kuda Bank
• quicksub.com.ng – HOW TO BORROW MONEY FROM KUDA BANK

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