Overview of Kuda Bank
Kuda Bank, a pioneering microfinance institution in Nigeria, has established itself as a leader in the country’s banking industry. It was among the first banks to fully embrace online banking services, and to this day, it continues to offer one of the most exceptional banking experiences in Nigeria.
With over 4 million users nationwide, Kuda Bank boasts an extensive customer base that has steadily grown since its adoption by Nigerians in 2020. The reasons for this exponential growth are evident. Kuda Bank provides a plethora of outstanding services, catering to the Nigerian desire for convenience and cost-effectiveness. It has become a preferred choice for individuals and business owners alike.
Overview of Kuda Overdraft
A standout service offered by Kuda Bank is its user-friendly mobile banking app. This app is designed for easy navigation, ensuring that even individuals without technical expertise can utilize it effortlessly. Additionally, Kuda Bank offers free banking services to its customers, distinguishing itself from other banks. Unlike traditional banking institutions, Kuda Bank allows customers to transfer funds between banks without incurring any transaction charges. This customer-centric approach has earned Kuda Bank the moniker “Bank of the Free,” making it the first Nigerian bank to introduce such a service.
Furthermore, Kuda Bank ensures that its customers receive physical debit cards free of charge upon opening an account. Customers can also conveniently pay utility bills without incurring any additional costs.
Notably, Kuda Bank recently introduced an appealing feature called “Overdraft” on its mobile banking app. This feature offers users a short-term or medium-term loan, serving as a financial lifeline during urgent expenses. If you haven’t already, opening an account with Kuda Bank will grant you access to this and other enticing benefits.
How to Open a Kuda Bank Account
To open a Kuda Bank Account, the process can be easily completed from the comfort of your home through online channels. Here’s a step-by-step guide:
- Download and install the Kuda Bank app from the Play Store (for Android users) or the App Store (for iPhone or iOS users).
- Launch the app and select “Create Account.”
- Provide essential details such as your Bank Verification Number (BVN), contact phone number, active email address, and the full name of the account holder.
- After entering the required information, an account number will be generated automatically.
- Create a four-digit pin to secure your online banking activities on the app.
Requirements to Obtain Loan and Overdraft from Kuda
To obtain a loan or overdraft from Kuda Bank, you must meet the following requirements:
- Maintain an active user status on the Kuda Bank app.
- Regularly utilize your Kuda Bank account for transactions and payments.
- Possess a good credit record with Kuda.
Once you meet these prerequisites, you will be automatically eligible for an overdraft of up to ₦50,000.
How to Apply for Kuda Overdraft
To apply for a Kuda overdraft, follow these steps:
- Open the Kuda Bank app and navigate to your account dashboard.
- Select the “Borrow” option on the dashboard.
- If you qualify for an overdraft, the “Get Overdraft” option will appear. Click on it.
- Adjust the desired loan amount, up to ₦50,000, and click “Finish.”
- The borrowed funds will be instantly credited to your account and ready for use.
How Much Loan or Overdraft Can I Get from Kuda?
The maximum amount you can borrow from Kuda is not predefined; however, the minimum threshold is ₦50,000. The loan limit is determined based on your transaction history with the bank, and maintaining a good credit and repayment record will increase your available overdraft limit.
Kuda Bank charges an interest rate of 0.3% per day on loans or overdrafts. This interest accumulates until the customer repays the loan in full.
How Do I pay back my Kuda Overdraft?
Repaying your Kuda overdraft is a seamless process. The money will be automatically deducted from your account once you deposit funds, and the accumulated interest will be removed simultaneously.
Failure to repay your Kuda overdraft over an extended period may result in the bank reporting your delinquency to the Central Bank of Nigeria (CBN). In some cases, Kuda Bank may request other banks to facilitate the repayment of your outstanding overdraft.
Getting in touch with Kuda Bank is effortless. The bank prides itself on offering exceptional customer support services. You can engage in a live chat with their representatives via the bank app or send your inquiries and complaints to firstname.lastname@example.org. Kuda Bank’s headquarters are located in Ikeja, Lagos State.
In conclusion, Kuda Bank continues to lead the way as a prominent microfinance institution in Nigeria, providing customers with an array of exceptional banking benefits. The Kuda Overdraft serves as a convenient and low-interest loan option for eligible users. However, it is crucial to ensure timely repayment to prevent the accumulation of debt.